Reviewing Seritage Growth Properties (NYSE:SRG) & Digital Realty Trust (NYSE:DLR)

Seritage Growth Properties (NYSE:SRG) and Digital Realty Trust (NYSE:DLR) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Seritage Growth Properties and Digital Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seritage Growth Properties	-404.37%	-20.13%	-12.10%
Digital Realty Trust	23.67%	6.41%	2.98%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Seritage Growth Properties and Digital Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seritage Growth Properties	1	0	0	0	1.00
Digital Realty Trust	0	7	16	3	2.85

Digital Realty Trust has a consensus price target of $193.22, indicating a potential upside of 21.32%. Given Digital Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Digital Realty Trust is more favorable than Seritage Growth Properties.

Volatility and Risk

Seritage Growth Properties has a beta of 2.38, suggesting that its stock price is 138% more volatile than the S&P 500. Comparatively, Digital Realty Trust has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

78.9% of Seritage Growth Properties shares are owned by institutional investors. Comparatively, 99.7% of Digital Realty Trust shares are owned by institutional investors. 0.6% of Seritage Growth Properties shares are owned by insiders. Comparatively, 0.1% of Digital Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Seritage Growth Properties and Digital Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seritage Growth Properties	$17.62 million	11.71	-$153.54 million	($1.42)	-2.58
Digital Realty Trust	$5.55 billion	9.85	$615.19 million	$3.87	41.15

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

Summary

Digital Realty Trust beats Seritage Growth Properties on 12 of the 15 factors compared between the two stocks.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.

About Digital Realty Trust

Digital Realty Trust, Inc. operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming. The company was founded on March 9, 2004, and is headquartered in Dallas, TX.