American Tower (NYSE:AMT – Get Rating) and Rexford Industrial Realty (NYSE:REXR – Get Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.
Analyst Recommendations
This is a summary of current ratings and recommmendations for American Tower and Rexford Industrial Realty, as reported by MarketBeat.
Get American Tower alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Tower | 0 | 3 | 10 | 0 | 2.77 |
| Rexford Industrial Realty | 0 | 1 | 3 | 0 | 2.75 |
American Tower currently has a consensus target price of $291.29, suggesting a potential upside of 27.30%. Rexford Industrial Realty has a consensus target price of $77.80, suggesting a potential upside of 37.53%. Given Rexford Industrial Realty's higher possible upside, analysts clearly believe Rexford Industrial Realty is more favorable than American Tower.
Profitability
This table compares American Tower and Rexford Industrial Realty's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| American Tower | 27.23% | 28.93% | 4.15% |
| Rexford Industrial Realty | 29.79% | 3.17% | 2.28% |
Risk & Volatility
American Tower has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Earnings & Valuation
This table compares American Tower and Rexford Industrial Realty's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Tower | $9.36 billion | 11.39 | $2.57 billion | $6.08 | 37.63 |
| Rexford Industrial Realty | $452.24 million | 21.40 | $128.24 million | $0.95 | 59.55 |
American Tower has higher revenue and earnings than Rexford Industrial Realty. American Tower is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.0% of American Tower shares are held by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are held by institutional investors. 0.2% of American Tower shares are held by insiders. Comparatively, 1.5% of Rexford Industrial Realty shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
American Tower pays an annual dividend of $5.72 per share and has a dividend yield of 2.5%. Rexford Industrial Realty pays an annual dividend of $1.26 per share and has a dividend yield of 2.2%. American Tower pays out 94.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 132.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower has increased its dividend for 11 consecutive years and Rexford Industrial Realty has increased its dividend for 6 consecutive years. American Tower is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
American Tower beats Rexford Industrial Realty on 10 of the 17 factors compared between the two stocks.
About American Tower
(Get Rating)
American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. For more information about American Tower, please visit the Earnings Materials and Investor Presentations sections of our investor relations website at .
About Rexford Industrial Realty
(Get Rating)
Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 232 properties with approximately 27.9 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.
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