Dynex Capital (DX) & Physicians Realty Trust (DOC) Financial Comparison

Physicians Realty Trust (NYSE:DOC) and Dynex Capital (NYSE:DX) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Profitability

This table compares Physicians Realty Trust and Dynex Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Physicians Realty Trust 13.31% 2.26% 1.34%
Dynex Capital 6.38% 14.22% 1.66%

Insider and Institutional Ownership

93.7% of Physicians Realty Trust shares are owned by institutional investors. Comparatively, 46.0% of Dynex Capital shares are owned by institutional investors. 0.6% of Physicians Realty Trust shares are owned by insiders. Comparatively, 3.4% of Dynex Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Physicians Realty Trust and Dynex Capital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Physicians Realty Trust $422.55 million 7.96 $56.23 million $1.08 17.06
Dynex Capital $110.05 million 3.98 $7.02 million $0.73 8.44

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

Volatility & Risk

Physicians Realty Trust has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Physicians Realty Trust and Dynex Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Physicians Realty Trust 0 3 7 0 2.70
Dynex Capital 0 1 1 0 2.50

Physicians Realty Trust currently has a consensus price target of $18.00, suggesting a potential downside of 2.33%. Dynex Capital has a consensus price target of $7.00, suggesting a potential upside of 13.64%. Given Dynex Capital’s higher probable upside, analysts plainly believe Dynex Capital is more favorable than Physicians Realty Trust.

Dividends

Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 5.0%. Dynex Capital pays an annual dividend of $0.72 per share and has a dividend yield of 11.7%. Physicians Realty Trust pays out 85.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynex Capital pays out 98.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Physicians Realty Trust has raised its dividend for 2 consecutive years.

Summary

Physicians Realty Trust beats Dynex Capital on 12 of the 17 factors compared between the two stocks.

Physicians Realty Trust Company Profile

Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing high quality healthcare. The Company conducts its business through an UPREIT structure in which its properties are owned by Physicians Realty L.P., a Delaware limited partnership (the “operating partnership”), directly or through limited partnerships, limited liability companies or other subsidiaries. The Company is the sole general partner of the operating partnership and, as of September 30, 2018, owned approximately 97.2% of the partnership interests in our operating partnership (“OP Units”).

Dynex Capital Company Profile

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Dynex Capital, Inc. was founded in 1987 and is headquartered in Glen Allen, Virginia.

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