DuPont Fabros Technology (NYSE: DFT) and Global Net Lease (NYSE:GNL) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Institutional and Insider Ownership
42.5% of Global Net Lease shares are held by institutional investors. 5.6% of DuPont Fabros Technology shares are held by insiders. Comparatively, 0.2% of Global Net Lease shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares DuPont Fabros Technology and Global Net Lease’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DuPont Fabros Technology||26.98%||17.13%||4.69%|
|Global Net Lease||16.04%||2.91%||1.35%|
Valuation and Earnings
This table compares DuPont Fabros Technology and Global Net Lease’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DuPont Fabros Technology||$543.97 million||9.45||$333.04 million||$1.64||40.43|
|Global Net Lease||$233.85 million||6.34||$180.89 million||$0.61||36.13|
DuPont Fabros Technology has higher revenue and earnings than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than DuPont Fabros Technology, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
DuPont Fabros Technology has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
DuPont Fabros Technology pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 9.7%. DuPont Fabros Technology pays out 122.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Net Lease pays out 349.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DuPont Fabros Technology has raised its dividend for 5 consecutive years.
This is a summary of recent recommendations and price targets for DuPont Fabros Technology and Global Net Lease, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DuPont Fabros Technology||0||9||4||0||2.31|
|Global Net Lease||0||1||0||0||2.00|
DuPont Fabros Technology presently has a consensus price target of $60.15, indicating a potential downside of 9.29%. Global Net Lease has a consensus price target of $24.45, indicating a potential upside of 10.93%. Given Global Net Lease’s higher probable upside, analysts clearly believe Global Net Lease is more favorable than DuPont Fabros Technology.
DuPont Fabros Technology beats Global Net Lease on 13 of the 17 factors compared between the two stocks.
DuPont Fabros Technology Company Profile
DuPont Fabros Technology, Inc. (DFT) is a real estate investment trust (REIT). The Company owns, acquires, develops and operates wholesale data centers. The Company’s customers include national and international enterprises across various industries, such as technology, Internet, content providers, cloud providers, media, communications, healthcare and financial services. Its data centers are located in four population centers: Northern Virginia; suburban Chicago, Illinois; Piscataway, New Jersey, and Santa Clara, California. As of December 31, 2016, the Company owned various properties, including 11 operating data centers facilities; five phases of existing data center facilities under development; one shell of a data center under development; two data center facilities with a phase or phases available for development, and parcels of land held for development of four data centers. As of December 31, 2016, the Company’s 11 data centers had a total of 3.3 million gross square feet.
Global Net Lease Company Profile
Global Net Lease, Inc. is a real estate investment trust. The Company’s business consists of owning, managing, operating, leasing, acquiring, investing in and disposing of real estate assets. It owns and invests in commercial properties principally in the United States, the United Kingdom and continental Europe that are then leased to companies. It was formed to primarily acquire a portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. As of December 31, 2016, it owned 310 properties consisting of 22 million rentable square feet. As of December 31, 2016, its owned 310 properties, including 241 properties located in the United States and Puerto Rico, 43 properties located in the United Kingdom and 26 properties located across continental Europe. It may also originate or acquire first mortgage loans secured by real estate. Its business is conducted through Global Net Lease Operating Partnership, L.P.
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