First Capital Realty (TSE:FCR.UN) and Dream Office Real Estate Investment Trst (TSE:D.UN) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.
Dividends
First Capital Realty pays an annual dividend of C$0.72 per share and has a dividend yield of 4.6%. Dream Office Real Estate Investment Trst pays an annual dividend of C$1.00 per share and has a dividend yield of 5.0%. First Capital Realty pays out 5,968.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dream Office Real Estate Investment Trst pays out 28.6% of its earnings in the form of a dividend. Dream Office Real Estate Investment Trst is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of current ratings for First Capital Realty and Dream Office Real Estate Investment Trst, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| First Capital Realty | 0 | 1 | 1 | 1 | 3.00 |
| Dream Office Real Estate Investment Trst | 0 | 1 | 2 | 0 | 2.67 |
First Capital Realty presently has a consensus target price of C$17.81, suggesting a potential upside of 14.70%. Dream Office Real Estate Investment Trst has a consensus target price of C$24.71, suggesting a potential upside of 23.94%. Given Dream Office Real Estate Investment Trst's higher possible upside, analysts plainly believe Dream Office Real Estate Investment Trst is more favorable than First Capital Realty.
Earnings & Valuation
This table compares First Capital Realty and Dream Office Real Estate Investment Trst's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| First Capital Realty | C$676.22 million | 5.03 | C$2.63 million | C$0.01 | 1,294.17 |
| Dream Office Real Estate Investment Trst | C$245.68 million | 4.53 | C$195.59 million | C$3.50 | 5.70 |
Dream Office Real Estate Investment Trst has lower revenue, but higher earnings than First Capital Realty. Dream Office Real Estate Investment Trst is trading at a lower price-to-earnings ratio than First Capital Realty, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares First Capital Realty and Dream Office Real Estate Investment Trst's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| First Capital Realty | N/A | N/A | N/A |
| Dream Office Real Estate Investment Trst | N/A | N/A | N/A |
Summary
Dream Office Real Estate Investment Trst beats First Capital Realty on 6 of the 11 factors compared between the two stocks.
