Critical Contrast: American Tower Corporation (REIT) (AMT) versus The Competition

American Tower Corporation (REIT) (NYSE: AMT) is one of 16 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its competitors? We will compare American Tower Corporation (REIT) to similar businesses based on the strength of its analyst recommendations, risk, valuation, profitability, institutional ownership, dividends and earnings.

Earnings & Valuation

This table compares American Tower Corporation (REIT) and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Tower Corporation (REIT) $6.33 billion $3.74 billion 56.39
American Tower Corporation (REIT) Competitors $966.23 million $509.71 million 28.00

American Tower Corporation (REIT) has higher revenue and earnings than its competitors. American Tower Corporation (REIT) is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

92.1% of American Tower Corporation (REIT) shares are owned by institutional investors. Comparatively, 64.6% of shares of all “Specialized REITs” companies are owned by institutional investors. 0.9% of American Tower Corporation (REIT) shares are owned by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

American Tower Corporation (REIT) pays an annual dividend of $2.56 per share and has a dividend yield of 1.8%. American Tower Corporation (REIT) pays out 102.8% 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, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 169.6% of their earnings in the form of a dividend. American Tower Corporation (REIT) has increased its dividend for 5 consecutive years.

Profitability

This table compares American Tower Corporation (REIT) and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Tower Corporation (REIT) 18.58% 16.70% 3.74%
American Tower Corporation (REIT) Competitors 34.60% 8.74% 3.15%

Analyst Ratings

This is a breakdown of recent ratings and price targets for American Tower Corporation (REIT) and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Tower Corporation (REIT) 0 0 11 0 3.00
American Tower Corporation (REIT) Competitors 85 319 596 24 2.55

American Tower Corporation (REIT) currently has a consensus price target of $146.80, indicating a potential upside of 4.56%. As a group, “Specialized REITs” companies have a potential upside of 16.17%. Given American Tower Corporation (REIT)’s competitors higher probable upside, analysts plainly believe American Tower Corporation (REIT) has less favorable growth aspects than its competitors.

Volatility and Risk

American Tower Corporation (REIT) has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, American Tower Corporation (REIT)’s competitors have a beta of 0.85, meaning that their average stock price is 15% less volatile than the S&P 500.

Summary

American Tower Corporation (REIT) beats its competitors on 8 of the 15 factors compared.

American Tower Corporation (REIT) Company Profile

American Tower Corporation (ATC) is a holding company. The Company operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. ATC’s segments include U.S. property, Asia property, EMEA property, Latin America property, Services and Other. Its primary business is property operations, which include the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities, and tenants in various other industries. Its U.S. property segment includes operations in the United States. Its Asia property segment includes operations in India. The EMEA property segment includes operations in Germany, Ghana, Nigeria, South Africa and Uganda. The Latin America property segment includes operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. Its services segment offers tower-related services in the United States.

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