Crown Castle International (NYSE: CCI – Get Rating) and InterRent Real Estate Investment Trust (OTCMKTS: IIPZF – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation, and analyst recommendations.
Crown Castle International pays an annual dividend of $5.88 per share and has a dividend yield of 3.0%. InterRent Real Estate Investment Trust pays an annual dividend of $0.27 per share and has a dividend yield of 2.6%. Crown Castle International pays 175.0% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. InterRent Real Estate Investment Trust pays 13.4% of its profits in the form of a dividend. Crown Castle International has increased its dividend for 7 consecutive years. Crown Castle International is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
This table compares the net margins, return on equity and return on assets of Crown Castle International and InterRent Real Estate Investment Trust.
|Net margins||Return on equity||return on assets|
|International Crown Castle||22.12%||17.40%||3.74%|
|InterRent Real Estate Investment Trust||185.14%||15.40%||9.26%|
This is a breakdown of the current ratings of Crown Castle International and InterRent Real Estate Investment Trust, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|International Crown Castle||1||4||8||0||2.54|
|InterRent Real Estate Investment Trust||0||1||6||0||2.86|
Crown Castle International currently has a consensus target price of $205.62, indicating a potential upside of 6.32%. InterRent Real Estate Investment Trust has a consensus target price of $18.64, indicating a potential upside of 79.57%. Given InterRent Real Estate Investment Trust’s higher consensus rating and higher likely upside, analysts clearly believe that InterRent Real Estate Investment Trust is more favorable than Crown Castle International.
Insider and Institutional Ownership
91.3% of Crown Castle International shares are held by institutional investors. 0.5% of Crown Castle International shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.
Valuation and benefits
This table compares the gross earnings, earnings per share (EPS) and valuation of Crown Castle International and InterRent Real Estate Investment Trust.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|International Crown Castle||$6.34 billion||13.21||$1.10 billion||$3.36||57.56|
|InterRent Real Estate Investment Trust||$147.71 million||9.88||$294.97 million||$2.01||5.16|
Crown Castle International has higher revenue and profit than InterRent Real Estate Investment Trust. InterRent Real Estate Investment Trust trades at a lower price-to-earnings ratio than Crown Castle International, indicating that it is currently the more affordable of the two stocks.
Volatility and risk
Crown Castle International has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. In comparison, InterRent Real Estate Investment Trust has a beta of 0.43, indicating that the its share price is 57% less volatile than the S&P. 500.
Crown Castle International beats InterRent Real Estate Investment Trust on 12 out of 17 factors compared between the two stocks.
Crown Castle International Company Profile (Get a rating)
Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 80,000 miles of fiber route supporting small cell and fiber solutions in all major US markets. This national communications infrastructure portfolio connects cities and communities to essential wireless data, technology and services, bringing information, ideas and innovation to the people and businesses that need it. For more information about Crown Castle, please visit www.crowncastle.com.
Company Profile InterRent Real Estate Investment Trust (Get a rating)
InterRent REIT is a growth-oriented real estate investment trust committed to increasing unitholder value and creating growing and sustainable distribution through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily in markets that have shown stable vacancies, enough suites available to achieve the critical mass needed to implement an effective portfolio management structure and provide opportunities for acquisitions accretive. InterRent’s main objectives are to use the proven industry experience of the trustees, management and operational team to: (i) grow both funds from operations per unit and value net asset value per unit through investments in a diversified portfolio of multi-residential properties; (ii) provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) maintain a conservative payout ratio and balance sheet.
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