QTS Realty Trust (QTS) vs. PMC Commercial Trust (CMCT) Critical Analysis

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.

Profitability

How to Become a New Pot Stock Millionaire

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%

Earnings & Valuation

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.

Dividends

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.

Analyst Ratings

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.

Receive News & Ratings for QTS Realty Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for QTS Realty Trust and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply