DCT Industrial Trust (DCT) versus Gramercy Property Trust (GPT) Head to Head Analysis

DCT Industrial Trust (NYSE: DCT) and Gramercy Property Trust (NYSE:GPT) are both mid-cap financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for DCT Industrial Trust and Gramercy Property Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DCT Industrial Trust 1 5 3 0 2.22
Gramercy Property Trust 1 2 3 0 2.33

DCT Industrial Trust currently has a consensus target price of $57.88, suggesting a potential downside of 2.01%. Gramercy Property Trust has a consensus target price of $31.25, suggesting a potential upside of 16.60%. Given Gramercy Property Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Gramercy Property Trust is more favorable than DCT Industrial Trust.

Profitability

This table compares DCT Industrial Trust and Gramercy Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DCT Industrial Trust 24.39% 5.16% 2.66%
Gramercy Property Trust 14.10% 2.60% 1.25%

Volatility and Risk

DCT Industrial Trust has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Gramercy Property Trust has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

This table compares DCT Industrial Trust and Gramercy Property Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DCT Industrial Trust $392.78 million 14.00 $93.06 million $1.10 53.69
Gramercy Property Trust $517.26 million 8.32 $33.35 million $0.44 60.91

DCT Industrial Trust has higher earnings, but lower revenue than Gramercy Property Trust. DCT Industrial 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.

Institutional & Insider Ownership

95.1% of DCT Industrial Trust shares are owned by institutional investors. Comparatively, 92.0% of Gramercy Property Trust shares are owned by institutional investors. 1.5% of DCT Industrial Trust shares are owned by company insiders. Comparatively, 1.4% of Gramercy Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

DCT Industrial Trust pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.6%. DCT Industrial Trust pays out 130.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. DCT Industrial Trust has increased its dividend for 2 consecutive years and Gramercy Property Trust has increased its dividend for 2 consecutive years.

Summary

DCT Industrial Trust beats Gramercy Property Trust on 10 of the 15 factors compared between the two stocks.

DCT Industrial Trust Company Profile

DCT Industrial Trust Inc. (DCT) is an industrial real estate company. The Company specializes in the ownership, acquisition, development, leasing and management of bulk-distribution and light-industrial properties located in various distribution markets in the United States. The Company operates through three segments: East, Central and West. As of December 31, 2016, the Company owned interests in approximately 74.0 million square feet of properties leased to various customers, including 64.7 million square feet consisting of 401 consolidated operating properties that were 97.2% occupied; 7.8 million square feet consisting of 23 unconsolidated properties that were 97.8% occupied; 0.3 million square feet consisting of three consolidated properties under redevelopment, and 1.2 million square feet consisting of four consolidated properties. As of December 31, 2016, the Company’s total consolidated portfolio consisted of 408 properties with an average size of 162,000 square feet.

Gramercy Property Trust Company Profile

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.

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