SBA Communications (NASDAQ:SBAC – Get Free Report) and EastGroup Properties (NYSE:EGP – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
This is a summary of current recommendations and price targets for SBA Communications and EastGroup Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SBA Communications currently has a consensus target price of $301.22, indicating a potential upside of 40.04%. EastGroup Properties has a consensus target price of $185.60, indicating a potential upside of 4.77%. Given SBA Communications’ stronger consensus rating and higher possible upside, equities research analysts plainly believe SBA Communications is more favorable than EastGroup Properties.
Volatility and Risk
Valuation & Earnings
This table compares SBA Communications and EastGroup Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SBA Communications||$2.72 billion||8.58||$461.43 million||$4.65||46.26|
|EastGroup Properties||$487.02 million||16.51||$186.18 million||$3.75||47.24|
SBA Communications has higher revenue and earnings than EastGroup Properties. SBA Communications is trading at a lower price-to-earnings ratio than EastGroup Properties, indicating that it is currently the more affordable of the two stocks.
This table compares SBA Communications and EastGroup Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
92.5% of SBA Communications shares are held by institutional investors. Comparatively, 90.7% of EastGroup Properties shares are held by institutional investors. 1.6% of SBA Communications shares are held by insiders. Comparatively, 1.5% of EastGroup Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
SBA Communications pays an annual dividend of $3.40 per share and has a dividend yield of 1.6%. EastGroup Properties pays an annual dividend of $5.00 per share and has a dividend yield of 2.8%. SBA Communications pays out 73.1% of its earnings in the form of a dividend. EastGroup Properties pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SBA Communications has raised its dividend for 4 consecutive years and EastGroup Properties has raised its dividend for 12 consecutive years. EastGroup Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
SBA Communications beats EastGroup Properties on 11 of the 18 factors compared between the two stocks.
About SBA Communications
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites in 16 markets throughout the Americas, Africa and the Philippines, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.
About EastGroup Properties
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 57.6 million square feet.
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