Head-To-Head Analysis: Millrose Properties (NYSE:MRP) & Lamar Advertising (NASDAQ:LAMR)

Lamar Advertising (NASDAQ:LAMR) and Millrose Properties (NYSE:MRP) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Institutional and Insider Ownership

93.8% of Lamar Advertising shares are held by institutional investors. 15.2% of Lamar Advertising shares are held by company insiders. Comparatively, 0.2% of Millrose Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lamar Advertising and Millrose Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lamar Advertising	0	3	2	0	2.40
Millrose Properties	0	0	3	1	3.25

Lamar Advertising currently has a consensus price target of $160.17, suggesting a potential upside of 6.36%. Millrose Properties has a consensus price target of $37.67, suggesting a potential upside of 23.44%. Given Millrose Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Millrose Properties is more favorable than Lamar Advertising.

Risk and Volatility

Lamar Advertising has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Earnings & Valuation

This table compares Lamar Advertising and Millrose Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lamar Advertising	$2.27 billion	6.75	$587.15 million	$5.48	27.48
Millrose Properties	$760.54 million	6.19	$379.86 million	$2.87	10.63

Lamar Advertising has higher revenue and earnings than Millrose Properties. Millrose Properties is trading at a lower price-to-earnings ratio than Lamar Advertising, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lamar Advertising and Millrose Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lamar Advertising	23.90%	54.94%	8.04%
Millrose Properties	62.60%	8.13%	5.07%

Dividends

Lamar Advertising pays an annual dividend of $6.40 per share and has a dividend yield of 4.2%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.1%. Lamar Advertising pays out 116.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lamar Advertising has raised its dividend for 5 consecutive years. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Lamar Advertising beats Millrose Properties on 11 of the 18 factors compared between the two stocks.

About Lamar Advertising

Lamar Advertising Company operates as an outdoor advertising company in the United States and Canada. The company owns and operates billboards, logo signs, and transit advertising displays, as well as rents space for advertising on billboards, buses, shelters, benches, logo plates, and in airport terminals. Lamar Advertising Company was founded in 1902 and is headquartered in Baton Rouge, Louisiana.

About Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.