Gramercy Property Trust (NYSE: GPT) and Granite Real Estate Investment Trust (NYSE:GRP) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
92.0% of Gramercy Property Trust shares are owned by institutional investors. 1.4% of Gramercy Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current ratings for Gramercy Property Trust and Granite Real Estate Investment Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||2||3||0||2.33|
|Granite Real Estate Investment Trust||0||1||0||0||2.00|
Gramercy Property Trust currently has a consensus price target of $31.25, suggesting a potential upside of 15.87%. Given Gramercy Property Trust’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gramercy Property Trust is more favorable than Granite Real Estate Investment Trust.
This table compares Gramercy Property Trust and Granite Real Estate Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gramercy Property Trust||14.10%||2.60%||1.25%|
|Granite Real Estate Investment Trust||N/A||N/A||N/A|
Earnings & Valuation
This table compares Gramercy Property Trust and Granite Real Estate Investment Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gramercy Property Trust||$517.26 million||8.38||$33.35 million||$0.44||61.30|
|Granite Real Estate Investment Trust||N/A||N/A||N/A||$1.29||30.64|
Gramercy Property Trust has higher revenue and earnings than Granite Real Estate Investment Trust. Granite Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Gramercy Property Trust, indicating that it is currently the more affordable of the two stocks.
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.6%. Granite Real Estate Investment Trust does not pay a dividend. Gramercy Property Trust pays out 340.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Real Estate Investment Trust has increased its dividend for 2 consecutive years.
Volatility and Risk
Gramercy Property Trust has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Granite Real Estate Investment Trust has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500.
Gramercy Property Trust beats Granite Real Estate Investment Trust on 11 of the 15 factors compared between the two stocks.
About Gramercy Property Trust
Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.
About Granite Real Estate Investment Trust
Granite Real Estate Investment Trust is a real estate investment trust (REIT). It is engaged principally in the acquisition, development, construction, leasing, management and ownership of an industrial global rental portfolio of properties in North America and Europe leased primarily to Magna International Inc. and its automotive operating units. It is a service REIT with an international portfolio consisting of over 100 properties. It provides a range of services that includes sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. In November 2013, Granite Real Estate Investment Trust completed its acquisition of a 2.5 million square foot portfolio of seven properties located in Germany and the Netherlands from funds managed by AEW Europe.
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