DLR vs. ESS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at DLR and ESS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both DLR and ESS are Real Estate Investment Trusts (REITs). These entities are required to distribute the majority of their taxable income to shareholders, often resulting in higher dividend yields.
| Symbol | DLR | ESS |
|---|---|---|
| Company Name | Digital Realty Trust, Inc. | Essex Property Trust, Inc. |
| Country | United States | United States |
| GICS Sector | Real Estate | Real Estate |
| GICS Industry | Specialized REITs | Residential REITs |
| Market Capitalization | 58.55 billion USD | 17.87 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | October 29, 2004 | June 7, 1994 |
| Security Type | REIT | REIT |
Historical Performance
This chart compares the performance of DLR and ESS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | DLR | ESS |
|---|---|---|
| 5-Day Price Return | -1.55% | 0.67% |
| 13-Week Price Return | 1.55% | -9.63% |
| 26-Week Price Return | 0.28% | -13.20% |
| 52-Week Price Return | 13.33% | -8.12% |
| Month-to-Date Return | -4.45% | -0.56% |
| Year-to-Date Return | -4.93% | -9.36% |
| 10-Day Avg. Volume | 1.29M | 0.66M |
| 3-Month Avg. Volume | 1.80M | 0.51M |
| 3-Month Volatility | 16.49% | 25.66% |
| Beta | 0.99 | 0.84 |
Profitability
Return on Equity (TTM)
DLR
6.37%
Specialized REITs Industry
- Max
- 37.66%
- Q3
- 20.19%
- Median
- 8.96%
- Q1
- 6.32%
- Min
- -1.71%
DLR’s Return on Equity of 6.37% is on par with the norm for the Specialized REITs industry, indicating its profitability relative to shareholder equity is typical for the sector.
ESS
14.44%
Residential REITs Industry
- Max
- 12.21%
- Q3
- 9.45%
- Median
- 7.42%
- Q1
- 2.50%
- Min
- 0.37%
ESS’s Return on Equity of 14.44% is exceptionally high, placing it well beyond the typical range for the Residential REITs industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
DLR
23.98%
Specialized REITs Industry
- Max
- 67.81%
- Q3
- 40.70%
- Median
- 25.91%
- Q1
- 11.01%
- Min
- 1.95%
In the Specialized REITs industry, Net Profit Margin is often not the primary profitability metric.
ESS
43.51%
Residential REITs Industry
- Max
- 67.49%
- Q3
- 38.86%
- Median
- 25.74%
- Q1
- 7.62%
- Min
- 0.15%
In the Residential REITs industry, Net Profit Margin is often not the primary profitability metric.
Operating Profit Margin (TTM)
DLR
12.40%
Specialized REITs Industry
- Max
- 107.13%
- Q3
- 55.10%
- Median
- 41.03%
- Q1
- 17.97%
- Min
- 5.94%
In the Specialized REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.
ESS
52.69%
Residential REITs Industry
- Max
- 54.06%
- Q3
- 45.82%
- Median
- 29.89%
- Q1
- 19.34%
- Min
- 5.28%
In the Residential REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | DLR | ESS |
|---|---|---|
| Return on Equity (TTM) | 6.37% | 14.44% |
| Return on Assets (TTM) | 3.00% | 6.16% |
| Net Profit Margin (TTM) | 23.98% | 43.51% |
| Operating Profit Margin (TTM) | 12.40% | 52.69% |
| Gross Profit Margin (TTM) | 57.91% | 70.55% |
Financial Strength
Current Ratio (MRQ)
DLR
1.35
Specialized REITs Industry
- Max
- 1.74
- Q3
- 1.13
- Median
- 0.59
- Q1
- 0.35
- Min
- 0.09
DLR’s Current Ratio of 1.35 is in the upper quartile for the Specialized REITs industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
ESS
0.71
Residential REITs Industry
- Max
- 1.28
- Q3
- 0.64
- Median
- 0.21
- Q1
- 0.12
- Min
- 0.00
ESS’s Current Ratio of 0.71 is in the upper quartile for the Residential REITs industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
DLR
0.81
Specialized REITs Industry
- Max
- 4.54
- Q3
- 3.26
- Median
- 1.09
- Q1
- 0.58
- Min
- 0.16
DLR’s Debt-to-Equity Ratio of 0.81 is typical for the Specialized REITs industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
ESS
1.20
Residential REITs Industry
- Max
- 1.62
- Q3
- 1.10
- Median
- 0.83
- Q1
- 0.69
- Min
- 0.28
ESS’s leverage is in the upper quartile of the Residential REITs industry, with a Debt-to-Equity Ratio of 1.20. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
DLR
2.12
Specialized REITs Industry
- Max
- 5.24
- Q3
- 4.05
- Median
- 2.99
- Q1
- 2.10
- Min
- 1.28
DLR’s Interest Coverage Ratio of 2.12 is positioned comfortably within the norm for the Specialized REITs industry, indicating a standard and healthy capacity to cover its interest payments.
ESS
8.86
Residential REITs Industry
- Max
- 5.11
- Q3
- 4.01
- Median
- 2.53
- Q1
- 1.52
- Min
- 0.52
With an Interest Coverage Ratio of 8.86, ESS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Residential REITs industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | DLR | ESS |
|---|---|---|
| Current Ratio (MRQ) | 1.35 | 0.71 |
| Quick Ratio (MRQ) | 1.35 | 0.17 |
| Debt-to-Equity Ratio (MRQ) | 0.81 | 1.20 |
| Interest Coverage Ratio (TTM) | 2.12 | 8.86 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
DLR
2.96%
Specialized REITs Industry
- Max
- 7.06%
- Q3
- 5.09%
- Median
- 4.51%
- Q1
- 3.18%
- Min
- 1.78%
DLR’s Dividend Yield of 2.96% is in the lower quartile for the Specialized REITs industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
ESS
3.90%
Residential REITs Industry
- Max
- 4.21%
- Q3
- 3.83%
- Median
- 3.40%
- Q1
- 3.27%
- Min
- 2.80%
With a Dividend Yield of 3.90%, ESS offers a more attractive income stream than most of its peers in the Residential REITs industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
DLR
123.72%
Specialized REITs Industry
- Max
- 295.93%
- Q3
- 182.11%
- Median
- 119.31%
- Q1
- 65.42%
- Min
- 43.86%
DLR’s Dividend Payout Ratio of 123.72% is within the typical range for the Specialized REITs industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
ESS
79.64%
Residential REITs Industry
- Max
- 210.87%
- Q3
- 145.45%
- Median
- 102.94%
- Q1
- 84.58%
- Min
- 17.15%
ESS’s Dividend Payout Ratio of 79.64% is in the lower quartile for the Residential REITs industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | DLR | ESS |
|---|---|---|
| Dividend Yield (TTM) | 2.96% | 3.90% |
| Dividend Payout Ratio (TTM) | 123.72% | 79.64% |
Valuation
Price-to-Earnings Ratio (TTM)
DLR
41.75
Specialized REITs Industry
- Max
- 85.59
- Q3
- 64.69
- Median
- 29.09
- Q1
- 18.22
- Min
- 8.79
The P/E Ratio is often not the primary metric for valuation in the Specialized REITs industry.
ESS
20.44
Residential REITs Industry
- Max
- 177.01
- Q3
- 109.22
- Median
- 31.26
- Q1
- 25.84
- Min
- 8.46
The P/E Ratio is often not the primary metric for valuation in the Residential REITs industry.
Price-to-Sales Ratio (TTM)
DLR
10.01
Specialized REITs Industry
- Max
- 14.35
- Q3
- 9.60
- Median
- 8.74
- Q1
- 5.61
- Min
- 1.63
DLR’s P/S Ratio of 10.01 is in the upper echelon for the Specialized REITs industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
ESS
8.89
Residential REITs Industry
- Max
- 12.50
- Q3
- 10.33
- Median
- 8.01
- Q1
- 6.55
- Min
- 5.06
ESS’s P/S Ratio of 8.89 aligns with the market consensus for the Residential REITs industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
DLR
2.56
Specialized REITs Industry
- Max
- 11.33
- Q3
- 5.68
- Median
- 2.69
- Q1
- 1.81
- Min
- 0.71
DLR’s P/B Ratio of 2.56 is within the conventional range for the Specialized REITs industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
ESS
3.24
Residential REITs Industry
- Max
- 4.49
- Q3
- 2.83
- Median
- 2.20
- Q1
- 1.42
- Min
- 0.67
ESS’s P/B Ratio of 3.24 is in the upper tier for the Residential REITs industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | DLR | ESS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 41.75 | 20.44 |
| Price-to-Sales Ratio (TTM) | 10.01 | 8.89 |
| Price-to-Book Ratio (MRQ) | 2.56 | 3.24 |
| Price-to-Free Cash Flow Ratio (TTM) | 1,694.69 | 70.96 |