QTS Realty Trust (NYSE: QTS) and PMC Commercial Trust (NASDAQ:CMCT) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
This table compares QTS Realty Trust and PMC Commercial Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|QTS Realty Trust||0.29%||3.15%||1.36%|
|PMC Commercial Trust||160.64%||52.42%||22.57%|
This table compares QTS Realty Trust and PMC Commercial Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|QTS Realty Trust||$446.51 million||4.14||$1.28 million||$2.76||13.24|
|PMC Commercial Trust||$236.37 million||2.75||$379.73 million||N/A||N/A|
PMC Commercial Trust has lower revenue, but higher earnings than QTS Realty Trust.
Risk & Volatility
QTS Realty Trust has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, PMC Commercial Trust has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
QTS Realty Trust pays an annual dividend of $1.64 per share and has a dividend yield of 4.5%. PMC Commercial Trust pays an annual dividend of $0.50 per share and has a dividend yield of 3.4%. QTS Realty Trust pays out 59.4% of its earnings in the form of a dividend. QTS Realty Trust has raised its dividend for 3 consecutive years. QTS Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and target prices for QTS Realty Trust and PMC Commercial Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|QTS Realty Trust||2||6||9||0||2.41|
|PMC Commercial Trust||0||0||0||0||N/A|
QTS Realty Trust presently has a consensus price target of $49.71, indicating a potential upside of 36.09%. Given QTS Realty Trust’s higher probable upside, equities research analysts plainly believe QTS Realty Trust is more favorable than PMC Commercial Trust.
Institutional and Insider Ownership
1.6% of PMC Commercial Trust shares are held by institutional investors. 16.1% of QTS Realty Trust shares are held by company insiders. Comparatively, 96.2% of PMC Commercial Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
About QTS Realty Trust
QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of secure, compliant data center solutions, hybrid cloud and fully managed services. QTS' integrated technology service platform of custom data center (C1), colocation (C2) and cloud and managed services (C3) provides flexible, scalable, secure IT solutions for web and IT applications. QTS' Critical Facilities Management (CFM) provides increased efficiency and greater performance for third-party data center owners and operators. QTS owns, operates or manages 25 data centers and supports more than 1,100 customers primarily in North America.
About PMC Commercial Trust
CIM Commercial Trust Corporation (NASDAQ: CMCT) is a real estate investment trust (REIT) that principally invests in, owns, and operates Class-A and creative office properties located in high density, high barrier-to-entry urban markets in the United States such as the San Francisco Bay Area, Washington, D.C. and Los Angeles. CIM Commercial Trust is managed by CIM Group, which is comprised of a seasoned team of real estate professionals with extensive expertise including in-house research, acquisition, investment, development, finance, leasing, and asset management. In addition, CIM Commercial Trust also deploys a portion of its capital to its real estate lending platform through its wholly owned subsidiary that originates and services loans under the U.S. Small Business Administration 7(a) Guaranteed Loan Program.
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