Gramercy Property Trust (GPT) & Stag Industrial (STAG) Financial Contrast

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

Earnings & Valuation

This table compares Gramercy Property Trust and Stag Industrial’s 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 8.61 $33.35 million $0.44 62.98
Stag Industrial $250.24 million 10.32 $34.51 million $0.54 50.83

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

Dividends

Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.4%. Stag Industrial pays an annual dividend of $1.41 per share and has a dividend yield of 5.1%. 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. Stag Industrial pays out 261.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gramercy Property Trust has raised its dividend for 6 consecutive years and Stag Industrial has raised its dividend for 2 consecutive years. Gramercy Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Gramercy Property Trust has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Institutional & Insider Ownership

92.2% of Gramercy Property Trust shares are held by institutional investors. Comparatively, 82.1% of Stag Industrial shares are held by institutional investors. 1.4% of Gramercy Property Trust shares are held by company insiders. Comparatively, 2.0% of Stag Industrial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Gramercy Property Trust and Stag Industrial’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%
Stag Industrial 18.96% 5.72% 2.54%

Analyst Ratings

This is a summary of recent recommendations and price targets for Gramercy Property Trust and Stag Industrial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gramercy Property Trust 1 2 3 0 2.33
Stag Industrial 0 1 5 0 2.83

Gramercy Property Trust presently has a consensus target price of $31.25, suggesting a potential upside of 12.78%. Stag Industrial has a consensus target price of $28.30, suggesting a potential upside of 3.10%. Given Gramercy Property Trust’s higher probable upside, equities analysts plainly believe Gramercy Property Trust is more favorable than Stag Industrial.

Summary

Stag Industrial beats Gramercy Property Trust on 12 of the 17 factors compared between the two stocks.

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.

Stag Industrial Company Profile

STAG Industrial, Inc. is a real estate investment trust. The Company is focused on the acquisition, ownership, and operation of single-tenant, industrial properties across the United States. As of December 31, 2016, the Company owned 314 buildings in 37 states with approximately 60.9 million rentable square feet, consisting of 243 warehouse/distribution buildings, 54 light manufacturing buildings, 16 flex/office buildings, and one building in redevelopment. The Company owns all of its properties and conducts its business primarily through STAG Industrial Operating Partnership, L.P. (Operating Partnership). The Company invests in properties historically used for industrial, light manufacturing and commercial purposes. As of December 31, 2016, the Company’s properties were in various locations, such as Montgomery, Alabama; Rogers, Arkansas; Phoenix, Arizona; Sparks, Maryland; Camarillo, California, and Golden and Grand Junction in Colorado.

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