American Tower (NYSE:AMT) & Millrose Properties (NYSE:MRP) Critical Review

American Tower (NYSE:AMT) and Millrose Properties (NYSE:MRP) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Dividends

American Tower pays an annual dividend of $7.16 per share and has a dividend yield of 3.8%. Millrose Properties pays an annual dividend of $3.16 per share and has a dividend yield of 12.1%. 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. Millrose Properties pays out 104.6% 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 has increased its dividend for 12 consecutive years.

Profitability

This table compares American Tower and Millrose Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Tower	30.10%	32.71%	5.24%
Millrose Properties	63.24%	8.56%	5.13%

Analyst Recommendations

This is a summary of current ratings and price targets for American Tower and Millrose Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Tower	0	2	16	1	2.95
Millrose Properties	0	3	0	1	2.50

American Tower currently has a consensus price target of $216.44, suggesting a potential upside of 15.82%. Millrose Properties has a consensus price target of $35.00, suggesting a potential upside of 33.72%. Given Millrose Properties’ higher probable upside, analysts clearly believe Millrose Properties is more favorable than American Tower.

Volatility & Risk

American Tower has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Institutional and Insider Ownership

92.7% of American Tower shares are owned by institutional investors. 0.1% of American Tower shares are owned by company insiders. Comparatively, 0.2% of Millrose Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares American Tower and Millrose Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Tower	$11.01 billion	7.91	$2.53 billion	$7.09	26.36
Millrose Properties	$792.29 million	5.10	$379.86 million	$3.02	8.67

American Tower has higher revenue and earnings than Millrose Properties. Millrose Properties is trading at a lower price-to-earnings ratio than American Tower, indicating that it is currently the more affordable of the two stocks.

Summary

American Tower beats Millrose Properties on 13 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 Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.