Lamar Advertising (NASDAQ:LAMR – Get Rating) and SBA Communications (NASDAQ:SBAC – Get Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Institutional & Insider Ownership
79.7% of Lamar Advertising shares are owned by institutional investors. Comparatively, 93.5% of SBA Communications shares are owned by institutional investors. 14.9% of Lamar Advertising shares are owned by company insiders. Comparatively, 1.6% of SBA Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Lamar Advertising and SBA Communications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lamar Advertising||$2.03 billion||4.57||$438.65 million||$4.15||21.95|
|SBA Communications||$2.63 billion||9.21||$461.43 million||$3.42||65.44|
This table compares Lamar Advertising and SBA Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for Lamar Advertising and SBA Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lamar Advertising presently has a consensus price target of $112.00, indicating a potential upside of 22.94%. SBA Communications has a consensus price target of $322.93, indicating a potential upside of 44.30%. Given SBA Communications’ stronger consensus rating and higher possible upside, analysts plainly believe SBA Communications is more favorable than Lamar Advertising.
Lamar Advertising pays an annual dividend of $5.00 per share and has a dividend yield of 5.5%. SBA Communications pays an annual dividend of $3.40 per share and has a dividend yield of 1.5%. Lamar Advertising pays out 120.5% 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 pays out 99.4% 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 3 consecutive years and SBA Communications has raised its dividend for 4 consecutive years.
Risk and Volatility
Lamar Advertising has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, SBA Communications has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
SBA Communications beats Lamar Advertising on 11 of the 18 factors compared between the two stocks.
About Lamar Advertising
Lamar Advertising Co. engages in advertising services. The firm rents advertising space on billboards, buses, shelters, benches, logo plates, and in airport terminals. The company was founded in 1902 and is headquartered in Baton Rouge, LA.
About SBA Communications
SBA Communications Corp. is a real estate investment trust, which engages in the provision of wireless communications infrastructures. It operates through the following business segments: Domestic Site Leasing, International Site Leasing, and Site Development. The Domestic Site Leasing segment includes AT&T, Sprint, T-Mobile, and Verizon Wireless. The International Site Leasing segment acquires and develops towers. The Site Development segment is involved in consulting and construction activities. The company was founded by Steven E. Bernstein in 1989 and is headquartered in Boca Raton, FL.
Receive News & Ratings for Lamar Advertising Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lamar Advertising and related companies with MarketBeat.com's FREE daily email newsletter.