Head-To-Head Analysis: DuPont Fabros Technology (DFT) vs. Monmouth R.E. Inv. (MNR)

DuPont Fabros Technology (NYSE: DFT) and Monmouth R.E. Inv. (NYSE:MNR) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for DuPont Fabros Technology and Monmouth R.E. Inv., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DuPont Fabros Technology 0 8 3 0 2.27
Monmouth R.E. Inv. 0 2 3 0 2.60

DuPont Fabros Technology presently has a consensus price target of $62.11, indicating a potential downside of 6.33%. Monmouth R.E. Inv. has a consensus price target of $17.40, indicating a potential upside of 18.05%. Given Monmouth R.E. Inv.’s stronger consensus rating and higher probable upside, analysts plainly believe Monmouth R.E. Inv. is more favorable than DuPont Fabros Technology.

Valuation and Earnings

This table compares DuPont Fabros Technology and Monmouth R.E. Inv.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DuPont Fabros Technology N/A N/A N/A $1.65 40.19
Monmouth R.E. Inv. $97.66 million 11.73 $40.27 million $0.33 44.67

Monmouth R.E. Inv. has higher revenue and earnings than DuPont Fabros Technology. DuPont Fabros Technology is trading at a lower price-to-earnings ratio than Monmouth R.E. Inv., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DuPont Fabros Technology and Monmouth R.E. Inv.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DuPont Fabros Technology 26.98% 17.13% 4.69%
Monmouth R.E. Inv. 36.04% 9.25% 3.10%

Volatility & Risk

DuPont Fabros Technology has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Monmouth R.E. Inv. has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Dividends

DuPont Fabros Technology pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Monmouth R.E. Inv. pays an annual dividend of $0.68 per share and has a dividend yield of 4.6%. DuPont Fabros Technology pays out 121.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth R.E. Inv. pays out 206.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DuPont Fabros Technology has increased its dividend for 3 consecutive years and Monmouth R.E. Inv. has increased its dividend for 6 consecutive years. Monmouth R.E. Inv. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

66.1% of Monmouth R.E. Inv. shares are owned by institutional investors. 5.6% of DuPont Fabros Technology shares are owned by insiders. Comparatively, 5.3% of Monmouth R.E. Inv. shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Monmouth R.E. Inv. beats DuPont Fabros Technology on 8 of the 14 factors compared between the two stocks.

DuPont Fabros Technology Company Profile

DuPont Fabros Technology, Inc. (DFT) is a real estate investment trust (REIT). The Company owns, acquires, develops and operates wholesale data centers. The Company’s customers include national and international enterprises across various industries, such as technology, Internet, content providers, cloud providers, media, communications, healthcare and financial services. Its data centers are located in four population centers: Northern Virginia; suburban Chicago, Illinois; Piscataway, New Jersey, and Santa Clara, California. As of December 31, 2016, the Company owned various properties, including 11 operating data centers facilities; five phases of existing data center facilities under development; one shell of a data center under development; two data center facilities with a phase or phases available for development, and parcels of land held for development of four data centers. As of December 31, 2016, the Company’s 11 data centers had a total of 3.3 million gross square feet.

Monmouth R.E. Inv. Company Profile

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s property portfolio consists of approximately 109 properties located across 30 states, containing a total of approximately 18.9 million rentable square feet.

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