American Tower (NYSE:AMT – Get Free Report) and One Liberty Properties (NYSE:OLP – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Institutional and Insider Ownership
92.7% of American Tower shares are owned by institutional investors. Comparatively, 36.2% of One Liberty Properties shares are owned by institutional investors. 0.2% of American Tower shares are owned by insiders. Comparatively, 25.4% of One Liberty Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares American Tower and One Liberty Properties”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
American Tower | $11.14 billion | 8.57 | $1.48 billion | $2.37 | 86.21 |
One Liberty Properties | $90.65 million | 6.79 | $29.61 million | $1.62 | 17.77 |
Profitability
This table compares American Tower and One Liberty Properties’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
American Tower | 10.05% | 22.01% | 3.55% |
One Liberty Properties | 38.96% | 11.35% | 4.58% |
Dividends
American Tower pays an annual dividend of $6.48 per share and has a dividend yield of 3.2%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.3%. American Tower pays out 273.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. One Liberty Properties pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. One Liberty Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
American Tower has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for American Tower and One Liberty Properties, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
American Tower | 0 | 3 | 9 | 1 | 2.85 |
One Liberty Properties | 0 | 0 | 1 | 0 | 3.00 |
American Tower presently has a consensus price target of $235.54, suggesting a potential upside of 15.28%. One Liberty Properties has a consensus price target of $28.00, suggesting a potential downside of 2.71%. Given American Tower’s higher probable upside, equities analysts plainly believe American Tower is more favorable than One Liberty Properties.
Summary
American Tower beats One Liberty Properties on 10 of the 17 factors compared between the two stocks.
About American Tower
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of U.S. data center facilities.
About One Liberty Properties
One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial and retail properties. Many of these properties are subject to long-term net leases under which the tenant is typically responsible for the property’s real estate taxes, insurance and ordinary maintenance and repairs.
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