Duke Realty Corporation (DRE) & Rexford Industrial Realty (REXR) Critical Review
Duke Realty Corporation (NYSE: DRE) and Rexford Industrial Realty (NASDAQ:REXR) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
93.7% of Duke Realty Corporation shares are owned by institutional investors. 0.3% of Duke Realty Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Duke Realty Corporation and Rexford Industrial Realty, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Duke Realty Corporation||0||4||6||0||2.60|
|Rexford Industrial Realty||0||1||4||0||2.80|
Duke Realty Corporation currently has a consensus price target of $29.00, indicating a potential downside of 2.42%. Rexford Industrial Realty has a consensus price target of $30.00, indicating a potential downside of 0.17%. Given Rexford Industrial Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Rexford Industrial Realty is more favorable than Duke Realty Corporation.
This table compares Duke Realty Corporation and Rexford Industrial Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Duke Realty Corporation||166.06%||8.72%||4.74%|
|Rexford Industrial Realty||53.98%||7.84%||4.92%|
Valuation & Earnings
This table compares Duke Realty Corporation and Rexford Industrial Realty’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Duke Realty Corporation||$922.63 million||11.46||$508.55 million||$4.03||7.37|
|Rexford Industrial Realty||$139.65 million||15.24||$82.43 million||N/A||N/A|
Duke Realty Corporation has higher revenue and earnings than Rexford Industrial Realty.
Duke Realty Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 2.6%. Rexford Industrial Realty does not pay a dividend. Duke Realty Corporation pays out 18.9% of its earnings in the form of a dividend. Rexford Industrial Realty has raised its dividend for 2 consecutive years.
Duke Realty Corporation beats Rexford Industrial Realty on 8 of the 15 factors compared between the two stocks.
Duke Realty Corporation Company Profile
Duke Realty Corporation is a self-managed real estate investment trust (REIT). The Company and Duke Realty Limited Partnership collectively specialize in the ownership, management and development of bulk distribution (industrial) and medical office real estate. It operates through three segments, the first two of which consist of the ownership and rental of industrial and medical office real estate investments. The operations of its industrial and medical office properties, as well as its rental operations, are collectively referred to as Rental Operations. The third segment includes real estate services, such as property management, asset management, leasing, development, general contracting and construction management. Its Service Operations segment also includes its taxable REIT subsidiary, through which certain of the segment’s operations are conducted. It maintains a Baa1 rating from Moody’s Investor Service, Inc. and a BBB+ rating from Standard & Poor’s Financial Services LLC.
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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