Digital Realty Trust (DLR) vs. Washington Real Estate Investment Trust (WRE) Head-To-Head Contrast

Digital Realty Trust (NYSE: DLR) and Washington Real Estate Investment Trust (NYSE:WRE) are both mid-cap financials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Digital Realty Trust has a beta of -0.09, suggesting that its share price is 109% less volatile than the S&P 500. Comparatively, Washington Real Estate Investment Trust has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Dividends

Digital Realty Trust pays an annual dividend of $3.72 per share and has a dividend yield of 3.3%. Washington Real Estate Investment Trust pays an annual dividend of $1.20 per share and has a dividend yield of 4.1%. Digital Realty Trust pays out 302.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Real Estate Investment Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Digital Realty Trust has increased its dividend for 13 consecutive years and Washington Real Estate Investment Trust has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Digital Realty Trust and Washington Real Estate Investment Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Realty Trust 0 7 7 0 2.50
Washington Real Estate Investment Trust 1 1 3 0 2.40

Digital Realty Trust presently has a consensus price target of $124.85, suggesting a potential upside of 10.48%. Washington Real Estate Investment Trust has a consensus price target of $33.88, suggesting a potential upside of 15.50%. Given Washington Real Estate Investment Trust’s higher possible upside, analysts plainly believe Washington Real Estate Investment Trust is more favorable than Digital Realty Trust.

Profitability

This table compares Digital Realty Trust and Washington Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Realty Trust 11.71% 5.15% 1.97%
Washington Real Estate Investment Trust 7.10% 2.10% 0.98%

Valuation and Earnings

This table compares Digital Realty Trust and Washington Real Estate Investment Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital Realty Trust $2.14 billion 10.84 $426.18 million $1.23 91.87
Washington Real Estate Investment Trust $313.26 million 7.35 $119.33 million $0.30 97.77

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

Institutional & Insider Ownership

98.3% of Digital Realty Trust shares are owned by institutional investors. Comparatively, 85.4% of Washington Real Estate Investment Trust shares are owned by institutional investors. 0.4% of Digital Realty Trust shares are owned by company insiders. Comparatively, 0.6% of Washington Real Estate Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Digital Realty Trust beats Washington Real Estate Investment Trust on 12 of the 17 factors compared between the two stocks.

Digital Realty Trust Company Profile

Digital Realty Trust, Inc. is a real estate investment trust (REIT). The Company is engaged in the business of owning, acquiring, developing and operating data centers. The Company is focused on providing data center and colocation solutions for domestic and international tenants across a range of industry verticals ranging from financial services, cloud and information technology services, to manufacturing, energy, healthcare and consumer products. As of December 31, 2016, its portfolio consisted of 145 operating properties, including 14 properties held as investments in unconsolidated joint ventures, of which 104 are located throughout the United States, 32 are located in Europe, four are located in Asia, three are located in Australia and two are located in Canada. It is a general partner of Digital Realty Trust, L.P. As of December 31, 2016, it owned an approximate 98.5% common general partnership interest in Digital Realty Trust, L.P.

Washington Real Estate Investment Trust Company Profile

Washington Real Estate Investment Trust is a self-administered equity real estate investment trust. The Company’s business consists of the ownership and operation of real property in the greater Washington metro region. The Company owns a diversified portfolio of office buildings, multifamily buildings and retail centers. The Company’s segments include office, multifamily and retail. The Company’s office properties provide office space for various types of businesses and professions. The Company’s multifamily properties provide rental housing for individuals and families throughout the Washington metro region. Its retail properties are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with various junior box tenants. As of April 4, 2017, it owned a diversified portfolio of 50 properties, totaling approximately 6.0 million square feet of commercial space and 4,480 residential units, and land held for development.

Receive News & Ratings for Digital Realty Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Digital Realty Trust and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply