Public Storage (NYSE:PSA) & Duke Realty (NYSE:DRE) Head-To-Head Analysis

Public Storage (NYSE:PSA) and Duke Realty (NYSE:DRE) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Dividends

Public Storage pays an annual dividend of $8.00 per share and has a dividend yield of 4.0%. Duke Realty pays an annual dividend of $0.94 per share and has a dividend yield of 2.3%. Public Storage pays out 74.4% of its earnings in the form of a dividend. Duke Realty pays out 65.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Duke Realty has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Public Storage and Duke Realty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Public Storage 6 5 2 0 1.69
Duke Realty 0 5 6 0 2.55

Public Storage presently has a consensus price target of $218.85, indicating a potential upside of 9.49%. Duke Realty has a consensus price target of $36.55, indicating a potential downside of 9.06%. Given Public Storage’s higher probable upside, equities analysts plainly believe Public Storage is more favorable than Duke Realty.

Volatility and Risk

Public Storage has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Duke Realty has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares Public Storage and Duke Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Public Storage 52.93% 30.33% 13.31%
Duke Realty 39.78% 7.38% 4.40%

Valuation & Earnings

This table compares Public Storage and Duke Realty’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Public Storage $2.85 billion 12.27 $1.52 billion $10.75 18.59
Duke Realty $973.76 million 15.20 $428.97 million $1.44 27.91

Public Storage has higher revenue and earnings than Duke Realty. Public Storage is trading at a lower price-to-earnings ratio than Duke Realty, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

79.6% of Public Storage shares are held by institutional investors. Comparatively, 97.2% of Duke Realty shares are held by institutional investors. 13.8% of Public Storage shares are held by company insiders. Comparatively, 0.3% of Duke Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Public Storage beats Duke Realty on 9 of the 17 factors compared between the two stocks.

Public Storage Company Profile

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At March 31, 2019, we had: (i) interests in 2,444 self-storage facilities located in 38 states with approximately 164 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 231 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the “Shurgard” brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at March 31, 2019. Our headquarters are located in Glendale, California.

Duke Realty Company Profile

Duke Realty Corporation owns and operates approximately 153 million rentable square feet of industrial assets in 20 major logistics markets. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P 500 Index.

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