Digital Realty Trust (NYSE:DLR – Get Free Report) and Wheeler Real Estate Investment Trust (NASDAQ:WHLR – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Risk and Volatility
Digital Realty Trust has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Wheeler Real Estate Investment Trust has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.
Insider and Institutional Ownership
99.7% of Digital Realty Trust shares are held by institutional investors. Comparatively, 35.3% of Wheeler Real Estate Investment Trust shares are held by institutional investors. 0.2% of Digital Realty Trust shares are held by insiders. Comparatively, 40.6% of Wheeler Real Estate Investment Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dividends
Analyst Recommendations
This is a summary of recent ratings and target prices for Digital Realty Trust and Wheeler Real Estate Investment Trust, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Digital Realty Trust | 1 | 9 | 10 | 1 | 2.52 |
Wheeler Real Estate Investment Trust | 0 | 0 | 0 | 0 | N/A |
Digital Realty Trust presently has a consensus price target of $156.61, suggesting a potential downside of 0.25%. Given Digital Realty Trust’s higher possible upside, research analysts clearly believe Digital Realty Trust is more favorable than Wheeler Real Estate Investment Trust.
Earnings and Valuation
This table compares Digital Realty Trust and Wheeler Real Estate Investment Trust”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 | $5.46 billion | 8.98 | $948.84 million | $3.60 | 43.61 |
Wheeler Real Estate Investment Trust | $103.61 million | 0.07 | -$4.69 million | ($4,458.03) | 0.00 |
Digital Realty Trust has higher revenue and earnings than Wheeler Real Estate Investment Trust. Wheeler Real Estate Investment Trust 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.
Profitability
This table compares Digital Realty Trust and Wheeler Real Estate Investment Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Digital Realty Trust | 20.58% | 5.93% | 2.61% |
Wheeler Real Estate Investment Trust | -10.98% | N/A | -1.70% |
Summary
Digital Realty Trust beats Wheeler Real Estate Investment Trust on 12 of the 16 factors compared between the two stocks.
About Digital Realty Trust
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.
About Wheeler Real Estate Investment Trust
Headquartered in Virginia Beach, Virginia, Wheeler Real Estate Investment Trust, Inc. is a fully integrated, self-managed commercial real estate investment trust (REIT) focused on owning and operating income-producing retail properties with a primary focus on grocery-anchored centers.
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