Digital Realty Trust (NYSE:DLR – Get Free Report) and Seritage Growth Properties (NYSE:SRG – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Risk and Volatility
Digital Realty Trust has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Digital Realty Trust and Seritage Growth Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Realty Trust | 0 | 8 | 16 | 3 | 2.81 |
| Seritage Growth Properties | 1 | 0 | 0 | 0 | 1.00 |
Earnings & Valuation
This table compares Digital Realty Trust and Seritage Growth Properties”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Realty Trust | $5.55 billion | 10.12 | $615.19 million | $3.87 | 42.29 |
| Seritage Growth Properties | $18.42 million | 11.22 | -$153.54 million | ($1.42) | -2.58 |
Digital Realty Trust has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties 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.
Institutional & Insider Ownership
99.7% of Digital Realty Trust shares are owned by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are owned by institutional investors. 0.1% of Digital Realty Trust shares are owned by company insiders. Comparatively, 0.6% of Seritage Growth Properties shares are owned 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.
Profitability
This table compares Digital Realty Trust and Seritage Growth Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Realty Trust | 23.67% | 6.41% | 2.98% |
| Seritage Growth Properties | -404.37% | -20.13% | -12.10% |
Dividends
Digital Realty Trust pays an annual dividend of $4.88 per share and has a dividend yield of 3.0%. Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 27.2%. 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. Seritage Growth Properties pays out -70.4% of its earnings in the form of a dividend. Seritage Growth Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Digital Realty Trust beats Seritage Growth Properties on 12 of the 17 factors compared between the two stocks.
About Digital Realty Trust
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.
About Seritage Growth Properties
Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.
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