Stag Industrial (STAG) & Its Competitors Financial Analysis

Stag Industrial (NYSE:STAG) is one of 50 public companies in the “Industrial REITs” industry, but how does it compare to its peers? We will compare Stag Industrial to related businesses based on the strength of its institutional ownership, earnings, profitability, risk, valuation, analyst recommendations and dividends.

Dividends

Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.2%. Stag Industrial pays out 109.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Industrial REITs” companies pay a dividend yield of 4.5% and pay out 104.6% of their earnings in the form of a dividend. Stag Industrial has raised its dividend for 7 consecutive years. Stag Industrial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Stag Industrial and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stag Industrial	$845.18 million	$273.52 million	25.99
Stag Industrial Competitors	$999.04 million	$263.98 million	55.29

Stag Industrial’s peers have higher revenue, but lower earnings than Stag Industrial. Stag Industrial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

88.7% of Stag Industrial shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Industrial REITs” companies are owned by institutional investors. 1.1% of Stag Industrial shares are owned by company insiders. Comparatively, 5.6% of shares of all “Industrial REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Stag Industrial and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stag Industrial	1	4	4	0	2.33
Stag Industrial Competitors	418	2302	2550	75	2.43

Stag Industrial presently has a consensus price target of $41.11, suggesting a potential upside of 12.21%. As a group, “Industrial REITs” companies have a potential upside of 47.19%. Given Stag Industrial’s peers stronger consensus rating and higher probable upside, analysts clearly believe Stag Industrial has less favorable growth aspects than its peers.

Risk and Volatility

Stag Industrial has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Stag Industrial’s peers have a beta of 1.04, suggesting that their average share price is 4% more volatile than the S&P 500.

Profitability

This table compares Stag Industrial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stag Industrial	29.88%	7.28%	3.66%
Stag Industrial Competitors	37.69%	4.99%	2.40%

Summary

Stag Industrial peers beat Stag Industrial on 11 of the 15 factors compared.

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.