STAG Industrial (NYSE:STAG – Get Rating) and Uniti Group (NASDAQ:UNIT – Get Rating) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Volatility & Risk
STAG Industrial has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Uniti Group has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
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Analyst Recommendations
This is a breakdown of current ratings and recommmendations for STAG Industrial and Uniti Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| STAG Industrial | 0 | 0 | 4 | 0 | 3.00 |
| Uniti Group | 0 | 0 | 0 | 0 | N/A |
STAG Industrial currently has a consensus target price of $45.25, indicating a potential upside of 41.85%. Given STAG Industrial's higher probable upside, equities analysts plainly believe STAG Industrial is more favorable than Uniti Group.
Valuation & Earnings
This table compares STAG Industrial and Uniti Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| STAG Industrial | $562.16 million | 10.17 | $192.33 million | $1.28 | 24.92 |
| Uniti Group | $1.10 billion | 2.06 | $123.66 million | $0.74 | 12.93 |
STAG Industrial has higher earnings, but lower revenue than Uniti Group. Uniti Group is trading at a lower price-to-earnings ratio than STAG Industrial, indicating that it is currently the more affordable of the two stocks.
Dividends
STAG Industrial pays an annual dividend of $1.46 per share and has a dividend yield of 4.6%. Uniti Group pays an annual dividend of $0.60 per share and has a dividend yield of 6.3%. STAG Industrial pays out 114.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Uniti Group pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. STAG Industrial has raised its dividend for 4 consecutive years. Uniti Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares STAG Industrial and Uniti Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| STAG Industrial | 36.16% | 6.62% | 3.82% |
| Uniti Group | 16.52% | -8.82% | 3.81% |
Insider and Institutional Ownership
84.1% of STAG Industrial shares are held by institutional investors. Comparatively, 84.7% of Uniti Group shares are held by institutional investors. 1.2% of STAG Industrial shares are held by insiders. Comparatively, 0.7% of Uniti Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
STAG Industrial beats Uniti Group on 11 of the 16 factors compared between the two stocks.
About STAG Industrial
(Get Rating)
STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. By targeting this type of property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.
About Uniti Group
(Get Rating)
Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of September 30, 2020, Uniti owns 6.7 million fiber strand miles and other communications real estate throughout the United States.
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