Ready Capital (RC) versus DCT Industrial Trust (DCT) Head to Head Survey

DCT Industrial Trust (NYSE:DCT) and Ready Capital (NYSE:RC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for DCT Industrial Trust and Ready Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DCT Industrial Trust 0 3 0 0 2.00
Ready Capital 0 2 5 0 2.71

DCT Industrial Trust presently has a consensus target price of $67.00, suggesting a potential upside of ∞. Ready Capital has a consensus target price of $17.17, suggesting a potential upside of 6.56%. Given DCT Industrial Trust’s higher possible upside, equities analysts clearly believe DCT Industrial Trust is more favorable than Ready Capital.

Insider and Institutional Ownership

90.2% of DCT Industrial Trust shares are held by institutional investors. Comparatively, 31.3% of Ready Capital shares are held by institutional investors. 1.4% of DCT Industrial Trust shares are held by insiders. Comparatively, 2.5% of Ready Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

DCT Industrial Trust pays an annual dividend of $1.44 per share. Ready Capital pays an annual dividend of $1.60 per share and has a dividend yield of 9.9%. Ready Capital pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DCT Industrial Trust has increased its dividend for 4 consecutive years.

Profitability

This table compares DCT Industrial Trust and Ready Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DCT Industrial Trust N/A N/A N/A
Ready Capital 31.38% 10.37% 2.15%

Earnings & Valuation

This table compares DCT Industrial Trust and Ready Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DCT Industrial Trust N/A N/A N/A N/A N/A
Ready Capital $138.30 million 3.74 $43.29 million $1.42 11.35

Ready Capital has higher revenue and earnings than DCT Industrial Trust.

Summary

Ready Capital beats DCT Industrial Trust on 8 of the 12 factors compared between the two stocks.

About DCT Industrial Trust

DCT Industrial is a leading logistics real estate company specializing in the ownership, development, acquisition, leasing and management of bulk-distribution and light-industrial properties in high-demand distribution markets in the United States. DCT's actively-managed portfolio is strategically located near population centers and well-positioned to take advantage of market dynamics. As of June 30, 2018, the Company owned interests in approximately 74.0 million square feet of properties leased to approximately 830 customers. DCT maintains a Baa2 rating from Moody's Investors Service and a BBB from S&P Global Ratings. Additional information is available at www.dctindustrial.com.

About Ready Capital

Ready Capital Corporation operates as a real estate finance company. The company acquires, originates, manages, services, and finances small balance commercial (SBC) loans, small business administration (SBA) loans, residential mortgage loans, and mortgage backed securities collateralized primarily by SBC loans, or other real estate-related investments. It operates through four segments: Loan Acquisitions; SBC Originations; SBA Originations, Acquisitions and Servicing; and Residential Mortgage Banking. The Loan Acquisitions segment acquires performing and non-performing SBC loans. The SBC Originations segment originates SBC loans secured by stabilized or transitional investor properties using various loan origination channels; and originates and services multi-family loan products. The SBA Originations, Acquisitions and Servicing segment acquires, originates, and services owner-occupied loans guaranteed by the SBA. The Residential Mortgage Banking segment originates residential mortgage loans through retail, correspondent, and broker channels. The company qualifies as a REIT for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York.

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