Contrasting Granite Real Estate Investment Trust (GRP) and First Industrial Realty Trust (FR)

Granite Real Estate Investment Trust (NYSE: GRP) and First Industrial Realty Trust (NYSE:FR) are both financials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

93.0% of First Industrial Realty Trust shares are owned by institutional investors. 1.7% of First Industrial Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

First Industrial Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 2.6%. Granite Real Estate Investment Trust does not pay a dividend. First Industrial Realty Trust pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Real Estate Investment Trust has increased its dividend for 3 consecutive years.

Profitability

This table compares Granite Real Estate Investment Trust and First Industrial Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Real Estate Investment Trust N/A N/A N/A
First Industrial Realty Trust 32.44% 9.54% 4.47%

Earnings and Valuation

This table compares Granite Real Estate Investment Trust and First Industrial Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Granite Real Estate Investment Trust N/A N/A N/A $1.29 30.64
First Industrial Realty Trust $378.02 million 10.23 $121.23 million $1.07 30.17

First Industrial Realty Trust has higher revenue and earnings than Granite Real Estate Investment Trust. First Industrial Realty Trust is trading at a lower price-to-earnings ratio than Granite Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Granite Real Estate Investment Trust has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Granite Real Estate Investment Trust and First Industrial Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Real Estate Investment Trust 0 3 0 0 2.00
First Industrial Realty Trust 0 4 3 0 2.43

Granite Real Estate Investment Trust currently has a consensus price target of $45.50, suggesting a potential upside of 15.13%. First Industrial Realty Trust has a consensus price target of $32.00, suggesting a potential downside of 0.87%. Given Granite Real Estate Investment Trust’s higher possible upside, research analysts clearly believe Granite Real Estate Investment Trust is more favorable than First Industrial Realty Trust.

Summary

First Industrial Realty Trust beats Granite Real Estate Investment Trust on 9 of the 14 factors compared between the two stocks.

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.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. is a real estate investment trust (REIT). The Trust is a self-administered real estate company, which owns, manages, acquires, sells, develops and redevelops industrial real estate. As of December 31, 2016, the Company’s in-service portfolio consisted of 215 light industrial properties, 53 research and development (R&D)/flex properties, 167 bulk warehouse properties and 100 regional warehouse properties containing an aggregate of approximately 62.2 million square feet of gross leasable area (GLA) located in 23 states. The Company’s in-service portfolio includes all properties that have reached stabilized occupancy, developed and redeveloped properties and acquired properties that are occupied at acquisition or one year from the acquisition date. The Company’s operations are conducted primarily through the First Industrial, L.P. (the Operating Partnership), of which the Company is the sole general partner.

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