DIGITAL RLTY TR/SH (NYSE:DLR) and SL Green Realty (NYSE:SLG) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.
Valuation & Earnings
This table compares DIGITAL RLTY TR/SH and SL Green Realty’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DIGITAL RLTY TR/SH||$2.46 billion||9.44||$248.25 million||$6.14||18.34|
|SL Green Realty||$1.51 billion||5.32||$112.77 million||$6.45||14.39|
Insider and Institutional Ownership
98.3% of DIGITAL RLTY TR/SH shares are owned by institutional investors. 0.4% of DIGITAL RLTY TR/SH shares are owned by company insiders. Comparatively, 3.7% of SL Green Realty shares are owned 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.
This table compares DIGITAL RLTY TR/SH and SL Green Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DIGITAL RLTY TR/SH||9.79%||3.02%||1.38%|
|SL Green Realty||26.46%||5.20%||2.47%|
Volatility & Risk
DIGITAL RLTY TR/SH has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, SL Green Realty has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for DIGITAL RLTY TR/SH and SL Green Realty, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DIGITAL RLTY TR/SH||0||6||11||0||2.65|
|SL Green Realty||1||6||7||0||2.43|
DIGITAL RLTY TR/SH presently has a consensus price target of $126.63, suggesting a potential upside of 12.48%. SL Green Realty has a consensus price target of $110.83, suggesting a potential upside of 19.38%. Given SL Green Realty’s higher probable upside, analysts clearly believe SL Green Realty is more favorable than DIGITAL RLTY TR/SH.
DIGITAL RLTY TR/SH pays an annual dividend of $4.04 per share and has a dividend yield of 3.6%. SL Green Realty pays an annual dividend of $3.25 per share and has a dividend yield of 3.5%. DIGITAL RLTY TR/SH pays out 65.8% of its earnings in the form of a dividend. SL Green Realty pays out 50.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. DIGITAL RLTY TR/SH has raised its dividend for 13 consecutive years and SL Green Realty has raised its dividend for 6 consecutive years. DIGITAL RLTY TR/SH is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
DIGITAL RLTY TR/SH beats SL Green Realty on 9 of the 17 factors compared between the two stocks.
DIGITAL RLTY TR/SH Company Profile
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products.
SL Green Realty Company Profile
SL Green Realty Corp. is a real estate investment trust, which engages in property management, acquisitions and dispositions, financing, development and redevelopment, construction, and leasing. It operates through the Real Estate, and Debt and Preferred Equity Investments segments. The Real Estate segment consists of security, maintenance, utility costs, real estate taxes and, at certain properties, ground rent expense. The Debt and Preferred Equity Investments segment includes cash flow from operations, cash on hand, and other forms of secured or unsecured financing. The company was founded by Stephen L. Green in June 1997 and is headquartered in New York, NY.
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