Financial Analysis: Digital Realty Trust (NYSE:DLR) vs. Plymouth Industrial REIT (NYSE:PLYM)

Plymouth Industrial REIT (NYSE:PLYMGet Free Report) and Digital Realty Trust (NYSE:DLRGet Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares Plymouth Industrial REIT and Digital Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Plymouth Industrial REIT 47.78% 16.76% 6.17%
Digital Realty Trust 23.67% 6.41% 2.98%

Dividends

Plymouth Industrial REIT pays an annual dividend of $0.96 per share and has a dividend yield of 4.4%. Digital Realty Trust pays an annual dividend of $4.88 per share and has a dividend yield of 3.1%. Plymouth Industrial REIT pays out 48.0% of its earnings in the form of a dividend. Digital Realty Trust pays out 126.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plymouth Industrial REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Plymouth Industrial REIT has a beta of 1.24, suggesting that its stock price is 24% 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.

Earnings and Valuation

This table compares Plymouth Industrial REIT and Digital Realty Trust”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Plymouth Industrial REIT $191.51 million 5.11 $139.34 million $2.00 10.99
Digital Realty Trust $5.91 billion 9.25 $615.19 million $3.87 41.15

Digital Realty Trust has higher revenue and earnings than Plymouth Industrial REIT. Plymouth Industrial REIT 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.

Analyst Ratings

This is a summary of recent ratings for Plymouth Industrial REIT and Digital Realty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Plymouth Industrial REIT 0 9 1 0 2.10
Digital Realty Trust 0 8 15 3 2.81

Plymouth Industrial REIT presently has a consensus target price of $21.00, indicating a potential downside of 4.44%. Digital Realty Trust has a consensus target price of $193.22, indicating a potential upside of 21.32%. Given Digital Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Digital Realty Trust is more favorable than Plymouth Industrial REIT.

Institutional & Insider Ownership

92.7% of Plymouth Industrial REIT shares are held by institutional investors. Comparatively, 99.7% of Digital Realty Trust shares are held by institutional investors. 1.6% of Plymouth Industrial REIT shares are held by company insiders. Comparatively, 0.1% of Digital Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Digital Realty Trust beats Plymouth Industrial REIT on 10 of the 17 factors compared between the two stocks.

About Plymouth Industrial REIT

(Get Free Report)

Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.

About Digital Realty Trust

(Get Free Report)

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.

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