Lamar Advertising (NASDAQ:LAMR – Get Free Report) and American Tower (NYSE:AMT – Get Free Report) are both large-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Risk & Volatility
Lamar Advertising has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, American Tower has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
Profitability
This table compares Lamar Advertising and American Tower’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lamar Advertising | 24.36% | 57.12% | 8.27% |
| American Tower | 30.10% | 32.71% | 5.24% |
Earnings & Valuation
This table compares Lamar Advertising and American Tower”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lamar Advertising | $2.27 billion | 7.29 | $587.15 million | $5.67 | 28.68 |
| American Tower | $11.01 billion | 8.02 | $2.53 billion | $7.09 | 26.84 |
American Tower has higher revenue and earnings than Lamar Advertising. American Tower is trading at a lower price-to-earnings ratio than Lamar Advertising, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
93.8% of Lamar Advertising shares are owned by institutional investors. Comparatively, 92.7% of American Tower shares are owned by institutional investors. 15.2% of Lamar Advertising shares are owned by company insiders. Comparatively, 0.1% of American Tower shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
Lamar Advertising pays an annual dividend of $6.60 per share and has a dividend yield of 4.1%. American Tower pays an annual dividend of $7.16 per share and has a dividend yield of 3.8%. Lamar Advertising pays out 116.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower pays out 101.0% 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 and American Tower has raised its dividend for 12 consecutive years.
Analyst Ratings
This is a breakdown of current ratings for Lamar Advertising and American Tower, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lamar Advertising | 1 | 3 | 2 | 0 | 2.17 |
| American Tower | 1 | 1 | 17 | 1 | 2.90 |
Lamar Advertising currently has a consensus price target of $159.14, suggesting a potential downside of 2.14%. American Tower has a consensus price target of $216.11, suggesting a potential upside of 13.57%. Given American Tower’s stronger consensus rating and higher possible upside, analysts plainly believe American Tower is more favorable than Lamar Advertising.
Summary
American Tower beats Lamar Advertising on 12 of the 18 factors compared between the two stocks.
About Lamar Advertising
Lamar Advertising Company is an out-of-home advertising company that provides businesses and organizations with ways to reach audiences beyond traditional media. Its offerings include billboard advertising, highway logo signs that direct travelers to nearby businesses and services, and transit advertising on vehicles and in transit-related locations. The company traces its origins to 1902 and is headquartered in Baton Rouge, Louisiana. It serves advertisers across the United States and Canada, with local operations supporting campaigns in markets throughout its service area.
About American Tower
American Tower Corporation is a real estate investment trust that owns, operates and develops communications infrastructure. Its portfolio includes wireless and broadcast communications sites, such as towers and rooftop installations, where mobile network operators and other customers place antennas and related equipment. The company also provides services related to site acquisition, development, construction and maintenance. Through its CoreSite business, American Tower operates data centers and provides colocation and interconnection services.
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