Financial Review: Digital Realty Trust (NYSE:DLR) and Millrose Properties (NYSE:MRP)

Digital Realty Trust (NYSE:DLRGet Free Report) and Millrose Properties (NYSE:MRPGet Free Report) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Risk and Volatility

Digital Realty Trust has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Insider & Institutional Ownership

99.7% of Digital Realty Trust shares are owned by institutional investors. 0.2% of Digital Realty Trust shares are owned by insiders. Comparatively, 0.2% of Millrose Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Digital Realty Trust pays an annual dividend of $4.88 per share and has a dividend yield of 2.6%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.1%. Digital Realty Trust pays out 236.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Digital Realty Trust and Millrose Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Realty Trust 0 6 25 1 2.84
Millrose Properties 0 0 3 1 3.25

Digital Realty Trust presently has a consensus target price of $219.45, indicating a potential upside of 15.01%. Millrose Properties has a consensus target price of $37.67, indicating a potential upside of 23.66%. Given Millrose Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Millrose Properties is more favorable than Digital Realty Trust.

Profitability

This table compares Digital Realty Trust and Millrose Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Realty Trust 11.80% 3.34% 1.59%
Millrose Properties 62.60% 8.13% 5.07%

Valuation & Earnings

This table compares Digital Realty Trust and Millrose Properties”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital Realty Trust $6.11 billion 11.58 $1.31 billion $2.06 92.63
Millrose Properties $760.54 million 6.18 $379.86 million $2.87 10.61

Digital Realty Trust has higher revenue and earnings than Millrose Properties. Millrose 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.

Summary

Millrose Properties beats Digital Realty Trust on 9 of the 16 factors compared between the two stocks.

About Digital Realty Trust

(Get Free Report)

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 Millrose Properties

(Get Free Report)

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.

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