SBA Communications (NASDAQ:SBAC) and Ladder Capital (NYSE:LADR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
This table compares SBA Communications and Ladder Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
SBA Communications has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Ladder Capital has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
Earnings & Valuation
This table compares SBA Communications and Ladder Capital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SBA Communications||$1.87 billion||15.13||$47.45 million||$7.60||32.84|
|Ladder Capital||$595.14 million||3.47||$180.01 million||$1.95||8.84|
Ladder Capital has lower revenue, but higher earnings than SBA Communications. Ladder Capital is trading at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
93.3% of SBA Communications shares are owned by institutional investors. Comparatively, 49.5% of Ladder Capital shares are owned by institutional investors. 2.5% of SBA Communications shares are owned by company insiders. Comparatively, 12.0% of Ladder Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
SBA Communications pays an annual dividend of $1.48 per share and has a dividend yield of 0.6%. Ladder Capital pays an annual dividend of $1.36 per share and has a dividend yield of 7.9%. SBA Communications pays out 19.5% of its earnings in the form of a dividend. Ladder Capital pays out 69.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a summary of current ratings and target prices for SBA Communications and Ladder Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SBA Communications currently has a consensus target price of $243.18, suggesting a potential downside of 2.57%. Ladder Capital has a consensus target price of $17.75, suggesting a potential upside of 2.96%. Given Ladder Capital’s higher probable upside, analysts plainly believe Ladder Capital is more favorable than SBA Communications.
About SBA Communications
SBA Communications Corporation is a first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America. By Building Better Wireless, SBA generates revenue from two primary businesses site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant communication sites to a variety of wireless service providers under long-term lease contracts.
About Ladder Capital
Ladder Capital Corp operates as a real estate investment trust in the United States. The company operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities and the U.S. Agency Securities. This segment also invests in corporate bonds and real estate related equity investments. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, student housing portfolio, industrial buildings, office buildings, shopping center, and condominium units. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York.
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