Comparing Summit Industrial Income REIT (OTCMKTS:SMMCF) and SBA Communications (NASDAQ:SBAC)

Summit Industrial Income REIT (OTCMKTS:SMMCFGet Free Report) and SBA Communications (NASDAQ:SBACGet Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Earnings and Valuation

This table compares Summit Industrial Income REIT and SBA Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Summit Industrial Income REIT N/A N/A N/A $0.59 29.50
SBA Communications $2.71 billion 7.77 $501.81 million $5.10 38.43

SBA Communications has higher revenue and earnings than Summit Industrial Income REIT. Summit Industrial Income REIT is trading at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.

Dividends

Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. SBA Communications pays an annual dividend of $3.92 per share and has a dividend yield of 2.0%. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. SBA Communications pays out 76.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SBA Communications has increased its dividend for 5 consecutive years. SBA Communications is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings for Summit Industrial Income REIT and SBA Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Industrial Income REIT 0 0 0 0 N/A
SBA Communications 0 0 10 1 3.09

SBA Communications has a consensus target price of $252.17, indicating a potential upside of 28.28%. Given SBA Communications’ higher possible upside, analysts plainly believe SBA Communications is more favorable than Summit Industrial Income REIT.

Profitability

This table compares Summit Industrial Income REIT and SBA Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Summit Industrial Income REIT N/A N/A N/A
SBA Communications 20.61% -10.75% 5.40%

Institutional and Insider Ownership

0.1% of Summit Industrial Income REIT shares are owned by institutional investors. Comparatively, 97.4% of SBA Communications shares are owned by institutional investors. 1.3% of SBA Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

SBA Communications beats Summit Industrial Income REIT on 12 of the 14 factors compared between the two stocks.

About Summit Industrial Income REIT

(Get Free Report)

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

About SBA Communications

(Get Free Report)

SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.

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