Equity One (EQY) and Digital Realty Trust (DLR) Critical Contrast
Equity One (NYSE: EQY) and Digital Realty Trust (NYSE:DLR) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Earnings and Valuation
This table compares Equity One and Digital Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Digital Realty Trust||$2.26 billion||8.86||$1.22 billion||$2.51||49.16|
Digital Realty Trust has higher revenue and earnings than Equity One. Digital Realty Trust is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.
This table compares Equity One and Digital Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Digital Realty Trust||21.27%||12.39%||4.15%|
Equity One pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. Digital Realty Trust pays an annual dividend of $3.72 per share and has a dividend yield of 3.0%. Equity One pays out 179.6% 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 pays out 148.2% 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 raised its dividend for 12 consecutive years. Digital Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Equity One has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Digital Realty Trust has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.
Insider and Institutional Ownership
64.0% of Equity One shares are held by institutional investors. 35.9% of Equity One shares are held by company insiders. Comparatively, 0.4% of Digital Realty Trust shares are held 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.
This is a breakdown of recent ratings and recommmendations for Equity One and Digital Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Digital Realty Trust||0||9||7||0||2.44|
Digital Realty Trust has a consensus target price of $122.00, indicating a potential downside of 1.13%. Given Digital Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Digital Realty Trust is more favorable than Equity One.
Digital Realty Trust beats Equity One on 11 of the 14 factors compared between the two stocks.
About Equity One
Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.
About Digital Realty Trust
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.
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