Logistics giant Deutsche Post (DE:DPW) and property company LEG Immobilien (DE:LEG) are popular stocks in the German market. LEG Immobilien has a price target with a higher upside of almost 60%, while Deutsche Post offers growth of around 8% in its share price.
Using the TipRanks Stock Comparison tool, we have compared these two stocks against each other on different parameters like price target, analyst rating, dividends, etc.
Let’s have a look at the details.
Deutsche Post DHL Group
Deutsche Post is one of the biggest logistics companies in the world. The company offers postal and logistics services in Germany and around the world.
Recently, the company reported its 2022 annual results with a strong performance during the year. The revenues were up 15.5% on a year-over-year basis, well-supported by its international shipping businesses across divisions. Even though the overall numbers were strong, the company experienced a weak fourth quarter, where operating profits fell by 13% to $2.02 billion. The forecast for 2023 is also lower than the expectations and levels for 2022.
On the plus side, the company’s cash flow position is solid, which will support future acquisitions, dividends, and share buybacks. In 2022, the company announced an annual dividend of €1.85 per share, slightly up from €1.80 in the previous year.
Deutsche Post Stock Forecast
DPW stock has a Moderate Buy rating on TipRanks with an average target price of €46.17, suggesting an upside of 8.25% on the current price.
The stock has been trading up by more than 40% in the last six months.
The stock has a total of 10 recommendations, out of which six are Buy.
Yesterday, analyst Andy Chu from Deutsche Bank reiterated his Buy rating on the stock. His price target on the stock is €50, which implies around 18% upside.
LEG Immobilien AG
LEG Immobilien is a real estate company that is engaged in the buying, selling, and leasing of properties in Germany.
Despite posting good numbers in its 2022 earnings report, the company decided to cancel its annual dividend for the year. This move was to strengthen its balance sheet with some extra cash and manage its higher debt levels.
Analysts feel the stock still ticks the box in terms of share price appreciation in the longer term. With market rates increasing for rentals, the company’s top line looks stable.
Recently, analysts from Goldman Sachs and Morgan Stanley have maintained their Hold and Buy ratings, respectively, on the stock. Morgan Stanley analyst Bart Gysens has a price target of €83 on the stock, which implies almost 60% growth in the share price.
LEG Immobilien Share Price Forecast
According to TipRanks’ analyst consensus, LEG stock has a Strong Buy rating, with a total of nine recommendations.
The average target price is €82.11, which has an upside of 56%.
Conclusion
Among the two companies, LEG Immobilien has a higher upside potential in its share price, according to analysts. However, the company has suspended its dividend in 2022, which makes it less attractive for income investors.
On the other hand, Deutsche Post stock has limited upside in its stock due to huge growth in the last six months. On the dividend front, DPW stock is still offering a yield of 4.6%.
