Reliable Long-term Trend to Profit From: Duke Realty Corporation (DRE), Canada Goose Holdings Inc. (GOOS)

The shares of Duke Realty Corporation have increased by more than 2.98% this year alone. The shares recently went down by -2.81% or -$0.81 and now trades at $28.02. The shares of Canada Goose Holdings Inc. (NYSE:GOOS), has jumped by 116.67% year to date as of 12/04/2018. The shares currently trade at $68.38 and have been able to report a change of 8.85% over the past one week.

The stock of Duke Realty Corporation and Canada Goose Holdings Inc. were two of the most active stocks on Tuesday. Investors seem to be very interested in what happens to the stocks of these two companies but do investors favor one over the other? We will analyze the growth, profitability, risk, valuation, and insider trends of both companies and see which one investors prefer.

Next 5Y EPS Growth: 6.00% versus 28.57%

When a company is able to grow consistently in terms of earnings at a high compound rate have the highest likelihood of creating value for its shareholders over time. Analysts have predicted that DRE will grow it’s earning at a 6.00% annual rate in the next 5 years. This is in contrast to GOOS which will have a positive growth at a 28.57% annual rate. This means that the higher growth rate of GOOS implies a greater potential for capital appreciation over the years.

Profitability and Returns

Growth alone cannot be used to see if the company will be valuable. Shareholders will be the losers if a company invest in ventures that aren’t profitable enough to support upbeat growth. In order for us to accurately measure profitability and return, we will be using the EBITDA margin and Return on Investment (ROI), which balances the difference in capital structure. DRE has an EBITDA margin of 89.18%, this implies that the underlying business of DRE is more profitable. These figures suggest that DRE ventures generate a higher ROI than that of GOOS.

Cash Flow

The value of a stock is ultimately determined by the amount of cash flow that the investors have available. Over the last 12 months, DRE’s free cash flow per share is a positive 0.01.


DRE currently trades at a forward P/E of 65.16, a P/B of 2.15, and a P/S of 11.23 while GOOS trades at a forward P/E of 106.84, a P/B of 35.56, and a P/S of 14.91. This means that looking at the earnings, book values and sales basis, DRE is the cheaper one. It is very obvious that earnings are the most important factors to investors, thus analysts are most likely to place their bet on the P/E.

Analyst Price Targets and Opinions

The mistake some people make is that they think a cheap stock has more value to it. In order to know the value of a stock, there is need to compare its current price to its likely trading price in the future. The price of DRE is currently at a -7.62% to its one-year price target of 30.33. Looking at its rival pricing, GOOS is at a 107.84% relative to its price target of 32.90.

When looking at the investment recommendation on say a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell), DRE is given a 2.40 while 1.70 placed for GOOS. This means that analysts are more bullish on the outlook for DRE stocks.

Insider Activity and Investor Sentiment

Short interest or otherwise called the percentage of a stock’s tradable shares currently being shorted is another data that investors use to get a handle on sentiment. The short ratio for DRE is 2.73 while that of GOOS is just 2.29. This means that analysts are more bullish on the forecast for GOOS stock.


The stock of Canada Goose Holdings Inc. defeats that of Duke Realty Corporation when the two are compared, with GOOS taking 5 out of the total factors that were been considered. GOOS happens to be more profitable, generates a higher ROI, has higher cash flow per share, higher liquidity and has a lower financial risk. When looking at the stock valuation, GOOS is the cheaper one on an earnings, book value and sales basis. Finally, the sentiment signal for GOOS is better on when it is viewed on short interest.

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