DIGITAL RLTY TR/SH (NYSE:DLR) and CHIMERA INVT CO/SH NEW (NYSE:CIM) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
This table compares DIGITAL RLTY TR/SH and CHIMERA INVT CO/SH NEW’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DIGITAL RLTY TR/SH||10.95%||3.27%||1.39%|
|CHIMERA INVT CO/SH NEW||21.84%||12.59%||1.82%|
DIGITAL RLTY TR/SH has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, CHIMERA INVT CO/SH NEW has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Earnings and Valuation
This table compares DIGITAL RLTY TR/SH and CHIMERA INVT CO/SH NEW’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DIGITAL RLTY TR/SH||$3.05 billion||8.22||$331.25 million||$6.60||18.22|
|CHIMERA INVT CO/SH NEW||$1.27 billion||2.81||$411.64 million||$2.34||8.18|
CHIMERA INVT CO/SH NEW has lower revenue, but higher earnings than DIGITAL RLTY TR/SH. CHIMERA INVT CO/SH NEW is trading at a lower price-to-earnings ratio than DIGITAL RLTY TR/SH, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for DIGITAL RLTY TR/SH and CHIMERA INVT CO/SH NEW, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DIGITAL RLTY TR/SH||0||4||8||0||2.67|
|CHIMERA INVT CO/SH NEW||0||2||1||0||2.33|
DIGITAL RLTY TR/SH currently has a consensus price target of $126.73, indicating a potential upside of 5.37%. CHIMERA INVT CO/SH NEW has a consensus price target of $19.25, indicating a potential upside of 0.57%. Given DIGITAL RLTY TR/SH’s stronger consensus rating and higher possible upside, equities analysts plainly believe DIGITAL RLTY TR/SH is more favorable than CHIMERA INVT CO/SH NEW.
Institutional and Insider Ownership
99.2% of DIGITAL RLTY TR/SH shares are held by institutional investors. Comparatively, 51.9% of CHIMERA INVT CO/SH NEW shares are held by institutional investors. 0.5% of DIGITAL RLTY TR/SH shares are held by insiders. Comparatively, 0.8% of CHIMERA INVT CO/SH NEW shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
DIGITAL RLTY TR/SH pays an annual dividend of $4.32 per share and has a dividend yield of 3.6%. CHIMERA INVT CO/SH NEW pays an annual dividend of $2.00 per share and has a dividend yield of 10.4%. DIGITAL RLTY TR/SH pays out 65.5% of its earnings in the form of a dividend. CHIMERA INVT CO/SH NEW pays out 85.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DIGITAL RLTY TR/SH has increased its dividend for 14 consecutive years and CHIMERA INVT CO/SH NEW has increased its dividend for 4 consecutive years.
DIGITAL RLTY TR/SH beats CHIMERA INVT CO/SH NEW on 10 of the 17 factors compared between the two stocks.
About DIGITAL RLTY TR/SH
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products.
About CHIMERA INVT CO/SH NEW
Chimera Investment Corporation operates as a real estate investment trust in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency and non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, commercial mortgage loans, and other real estate related securities. It has elected to be taxed as a real estate investment trust. As a result, the company would not be subject to U.S. federal income tax, if it distributes at least 90% of its REIT taxable income to its shareholders. Chimera Investment Corporation was founded in 2007 and is headquartered in New York, New York.
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