Millrose Properties (NYSE:MRP) versus Digital Realty Trust (NYSE:DLR) Critical Contrast

Digital Realty Trust (NYSE:DLR) and Millrose Properties (NYSE:MRP) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Digital Realty Trust and Millrose Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Realty Trust	0	6	25	1	2.84
Millrose Properties	0	0	3	1	3.25

Digital Realty Trust presently has a consensus price target of $219.45, suggesting a potential upside of 16.41%. Millrose Properties has a consensus price target of $37.67, suggesting a potential upside of 23.40%. Given Millrose Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Millrose Properties is more favorable than Digital Realty Trust.

Risk & Volatility

Digital Realty Trust has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Institutional and Insider Ownership

99.7% of Digital Realty Trust shares are owned by institutional investors. 0.2% of Digital Realty Trust shares are owned by insiders. Comparatively, 0.2% of Millrose Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Digital Realty Trust and Millrose Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Realty Trust	$6.11 billion	11.44	$1.31 billion	$2.06	91.51
Millrose Properties	$760.54 million	6.19	$379.86 million	$2.87	10.64

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

Profitability

This table compares Digital Realty Trust and Millrose Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Realty Trust	11.80%	3.34%	1.59%
Millrose Properties	62.60%	8.13%	5.07%

Dividends

Digital Realty Trust pays an annual dividend of $4.88 per share and has a dividend yield of 2.6%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.1%. Digital Realty Trust pays out 236.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Millrose Properties beats Digital Realty Trust on 9 of the 16 factors compared between the two stocks.

About Digital Realty Trust

Digital Realty Trust, Inc. operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming. The company was founded on March 9, 2004, and is headquartered in Dallas, TX.

About Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.