DCT Industrial Trust (NYSE: DCT) and Rexford Industrial Realty (NYSE:REXR) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
95.4% of DCT Industrial Trust shares are held by institutional investors. Comparatively, 98.8% of Rexford Industrial Realty shares are held by institutional investors. 1.5% of DCT Industrial Trust shares are held by company insiders. Comparatively, 2.1% of Rexford Industrial Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares DCT Industrial Trust and Rexford Industrial Realty’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DCT Industrial Trust||$418.17 million||13.31||$286.65 million||$0.99||60.42|
|Rexford Industrial Realty||$139.65 million||15.42||$82.43 million||$0.45||67.58|
DCT Industrial Trust has higher revenue and earnings than Rexford Industrial Realty. DCT Industrial Trust is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.
This table compares DCT Industrial Trust and Rexford Industrial Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DCT Industrial Trust||22.20%||4.69%||2.43%|
|Rexford Industrial Realty||25.38%||3.72%||2.15%|
This is a breakdown of current ratings and price targets for DCT Industrial Trust and Rexford Industrial Realty, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DCT Industrial Trust||0||5||2||0||2.29|
|Rexford Industrial Realty||0||2||1||0||2.33|
DCT Industrial Trust presently has a consensus price target of $53.00, suggesting a potential downside of 11.40%. Rexford Industrial Realty has a consensus price target of $23.75, suggesting a potential downside of 21.90%. Given DCT Industrial Trust’s higher probable upside, research analysts clearly believe DCT Industrial Trust is more favorable than Rexford Industrial Realty.
Volatility and Risk
DCT Industrial Trust has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
DCT Industrial Trust pays an annual dividend of $1.24 per share and has a dividend yield of 2.1%. Rexford Industrial Realty pays an annual dividend of $0.58 per share and has a dividend yield of 1.9%. DCT Industrial Trust pays out 125.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 128.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DCT Industrial Trust has raised its dividend for 2 consecutive years. DCT Industrial Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
DCT Industrial Trust beats Rexford Industrial Realty on 11 of the 17 factors compared between the two stocks.
DCT Industrial Trust Company Profile
DCT Industrial Trust Inc. (DCT) is an industrial real estate company. The Company specializes in the ownership, acquisition, development, leasing and management of bulk-distribution and light-industrial properties located in various distribution markets in the United States. The Company operates through three segments: East, Central and West. As of December 31, 2016, the Company owned interests in approximately 74.0 million square feet of properties leased to various customers, including 64.7 million square feet consisting of 401 consolidated operating properties that were 97.2% occupied; 7.8 million square feet consisting of 23 unconsolidated properties that were 97.8% occupied; 0.3 million square feet consisting of three consolidated properties under redevelopment, and 1.2 million square feet consisting of four consolidated properties. As of December 31, 2016, the Company’s total consolidated portfolio consisted of 408 properties with an average size of 162,000 square feet.
Rexford Industrial Realty Company Profile
Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. Rexford Industrial Realty, L.P. is the operating partnership of the Company. Through its controlling interest in Operating Partnership and its subsidiaries, the Company owns, manages, leases, acquires and develops industrial real estate located in Southern California infill markets, and from time to time, acquires or provides mortgage debt secured by industrial property. As of July 19, 2017, the Company’s consolidated portfolio consisted of 142 properties with approximately 17.7 million rentable square feet. In addition, the Company managed an additional 19 properties with approximately 1.2 million rentable square feet.
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