Head to Head Survey: QTS Realty Trust (NYSE:QTS) vs. Its Competitors

QTS Realty Trust (NYSE: QTS) is one of 17 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its competitors? We will compare QTS Realty Trust to related companies based on the strength of its analyst recommendations, valuation, earnings, dividends, profitability, institutional ownership and risk.

Valuation and Earnings

This table compares QTS Realty Trust and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
QTS Realty Trust $422.74 million $158.07 million 137.30
QTS Realty Trust Competitors $1.01 billion $499.61 million 28.39

QTS Realty Trust’s competitors have higher revenue and earnings than QTS Realty Trust. QTS Realty Trust is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for QTS Realty Trust and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QTS Realty Trust 0 4 8 0 2.67
QTS Realty Trust Competitors 27 228 582 21 2.70

QTS Realty Trust presently has a consensus target price of $57.33, suggesting a potential upside of 1.85%. As a group, “Specialized REITs” companies have a potential upside of 12.94%. Given QTS Realty Trust’s competitors stronger consensus rating and higher possible upside, analysts plainly believe QTS Realty Trust has less favorable growth aspects than its competitors.

Dividends

QTS Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 2.8%. QTS Realty Trust pays out 380.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 170.4% of their earnings in the form of a dividend. QTS Realty Trust has raised its dividend for 2 consecutive years. QTS Realty Trust lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

64.6% of shares of all “Specialized REITs” companies are owned by institutional investors. 17.3% of QTS Realty Trust shares are owned by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares QTS Realty Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QTS Realty Trust 4.67% 2.13% 0.94%
QTS Realty Trust Competitors 34.45% 8.82% 3.22%

Volatility and Risk

QTS Realty Trust has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, QTS Realty Trust’s competitors have a beta of 0.87, meaning that their average stock price is 13% less volatile than the S&P 500.

Summary

QTS Realty Trust competitors beat QTS Realty Trust on 13 of the 15 factors compared.

QTS Realty Trust Company Profile

QTS Realty Trust, Inc. (QTS) is a provider of secure, compliant data center solutions, hybrid cloud and fully managed services. The Company owns, develops and operates carrier-neutral and multi-tenant data centers. Its data centers are facilities that house the network and computer equipment of multiple customers and provide access to a range of communications carriers. The Company has an integrated platform through which it owns and operates its data centers and provides a range of information technology (IT) infrastructure solutions. Its spectrum of core data center products is referred to as 3Cs, which consists of Custom Data Center (C1), Colocation (C2), and Cloud and Managed Services (C3). Its 3C integrated technology platform provides information technology solutions for Web and information technology applications. Its data centers facilities are used by its customers to house, power and cool the networking equipment and computer systems that support their business processes.

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