Gramercy Property Trust (NYSE: GPT) and First Industrial Realty Trust (NYSE:FR) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
Risk & Volatility
Gramercy Property Trust has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Institutional and Insider Ownership
92.2% of Gramercy Property Trust shares are owned by institutional investors. Comparatively, 93.0% of First Industrial Realty Trust shares are owned by institutional investors. 1.0% of Gramercy Property Trust shares are owned by insiders. Comparatively, 1.7% of First Industrial Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Gramercy Property Trust and First Industrial Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||2||3||0||2.33|
|First Industrial Realty Trust||0||4||3||0||2.43|
Gramercy Property Trust presently has a consensus price target of $31.25, indicating a potential upside of 12.17%. First Industrial Realty Trust has a consensus price target of $32.00, indicating a potential downside of 0.84%. Given Gramercy Property Trust’s higher probable upside, research analysts plainly believe Gramercy Property Trust is more favorable than First Industrial Realty Trust.
Earnings & Valuation
This table compares Gramercy Property Trust and First Industrial Realty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gramercy Property Trust||$517.26 million||8.65||$33.35 million||$0.44||63.32|
|First Industrial Realty Trust||$378.02 million||10.23||$121.23 million||$1.07||30.16|
First Industrial Realty Trust has lower revenue, but higher earnings than Gramercy Property Trust. First Industrial Realty Trust is trading at a lower price-to-earnings ratio than Gramercy Property Trust, indicating that it is currently the more affordable of the two stocks.
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.4%. First Industrial Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 2.6%. Gramercy Property Trust pays out 340.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gramercy Property Trust has raised its dividend for 2 consecutive years and First Industrial Realty Trust has raised its dividend for 3 consecutive years.
This table compares Gramercy Property Trust and First Industrial Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gramercy Property Trust||14.10%||2.60%||1.25%|
|First Industrial Realty Trust||32.44%||9.54%||4.47%|
First Industrial Realty Trust beats Gramercy Property Trust on 13 of the 16 factors compared between the two stocks.
About Gramercy Property Trust
Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.
About First Industrial Realty Trust
First Industrial Realty Trust, Inc. is a real estate investment trust (REIT). The Trust is a self-administered real estate company, which owns, manages, acquires, sells, develops and redevelops industrial real estate. As of December 31, 2016, the Company’s in-service portfolio consisted of 215 light industrial properties, 53 research and development (R&D)/flex properties, 167 bulk warehouse properties and 100 regional warehouse properties containing an aggregate of approximately 62.2 million square feet of gross leasable area (GLA) located in 23 states. The Company’s in-service portfolio includes all properties that have reached stabilized occupancy, developed and redeveloped properties and acquired properties that are occupied at acquisition or one year from the acquisition date. The Company’s operations are conducted primarily through the First Industrial, L.P. (the Operating Partnership), of which the Company is the sole general partner.
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