Financial Analysis: Duke Realty Corporation (DRE) & Its Peers

Duke Realty Corporation (NYSE: DRE) is one of 14 public companies in the “Industrial REITs” industry, but how does it contrast to its competitors? We will compare Duke Realty Corporation to related businesses based on the strength of its institutional ownership, earnings, dividends, risk, profitability, valuation and analyst recommendations.

Risk and Volatility

Duke Realty Corporation has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Duke Realty Corporation’s competitors have a beta of 1.06, suggesting that their average stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Duke Realty Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duke Realty Corporation 0 5 5 0 2.50
Duke Realty Corporation Competitors 56 502 494 5 2.42

Duke Realty Corporation currently has a consensus price target of $29.56, indicating a potential upside of 2.06%. As a group, “Industrial REITs” companies have a potential downside of 1.47%. Given Duke Realty Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Duke Realty Corporation is more favorable than its competitors.

Dividends

Duke Realty Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 2.6%. Duke Realty Corporation pays out 18.2% of its earnings in the form of a dividend. As a group, “Industrial REITs” companies pay a dividend yield of 2.9% and pay out 81.0% of their earnings in the form of a dividend. Duke Realty Corporation has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

93.2% of Duke Realty Corporation shares are held by institutional investors. Comparatively, 93.1% of shares of all “Industrial REITs” companies are held by institutional investors. 0.3% of Duke Realty Corporation shares are held by company insiders. Comparatively, 1.7% of shares of all “Industrial REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Duke Realty Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Duke Realty Corporation $902.24 million $312.14 million 6.94
Duke Realty Corporation Competitors $606.71 million $215.55 million 144.04

Duke Realty Corporation has higher revenue and earnings than its competitors. Duke Realty Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Duke Realty Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Duke Realty Corporation 178.66% 6.36% 3.68%
Duke Realty Corporation Competitors 52.16% 7.10% 3.68%

Summary

Duke Realty Corporation beats its competitors on 8 of the 15 factors compared.

About Duke Realty Corporation

Duke Realty Corporation is a self-managed real estate investment trust (REIT). The Company and Duke Realty Limited Partnership collectively specialize in the ownership, management and development of bulk distribution (industrial) and medical office real estate. It operates through three segments, the first two of which consist of the ownership and rental of industrial and medical office real estate investments. The operations of its industrial and medical office properties, as well as its rental operations, are collectively referred to as Rental Operations. The third segment includes real estate services, such as property management, asset management, leasing, development, general contracting and construction management. Its Service Operations segment also includes its taxable REIT subsidiary, through which certain of the segment’s operations are conducted. It maintains a Baa1 rating from Moody’s Investor Service, Inc. and a BBB+ rating from Standard & Poor’s Financial Services LLC.

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