Comparing Farmland Partners (FPI) & Communications Sales & Leasing,Inc. (NASDAQ:UNIT)

Farmland Partners (NYSE: FPI) and Communications Sales & Leasing,Inc. (NASDAQ:UNIT) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Insider and Institutional Ownership

38.9% of Farmland Partners shares are held by institutional investors. Comparatively, 57.0% of Communications Sales & Leasing,Inc. shares are held by institutional investors. 2.8% of Farmland Partners shares are held by insiders. Comparatively, 0.4% of Communications Sales & Leasing,Inc. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Farmland Partners and Communications Sales & Leasing,Inc., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmland Partners 0 2 2 0 2.50
Communications Sales & Leasing,Inc. 0 0 8 1 3.11

Farmland Partners currently has a consensus price target of $10.38, indicating a potential upside of 18.03%. Communications Sales & Leasing,Inc. has a consensus price target of $31.17, indicating a potential upside of 60.90%. Given Communications Sales & Leasing,Inc.’s stronger consensus rating and higher probable upside, analysts clearly believe Communications Sales & Leasing,Inc. is more favorable than Farmland Partners.

Profitability

This table compares Farmland Partners and Communications Sales & Leasing,Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmland Partners 12.46% 1.66% 0.60%
Communications Sales & Leasing,Inc. -5.41% N/A -1.29%

Risk & Volatility

Farmland Partners has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Communications Sales & Leasing,Inc. has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Earnings & Valuation

This table compares Farmland Partners and Communications Sales & Leasing,Inc.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Farmland Partners $38.89 million 7.45 $24.04 million $0.12 73.26
Communications Sales & Leasing,Inc. $831.65 million 4.09 $681.10 million ($0.32) -60.53

Communications Sales & Leasing,Inc. has higher revenue and earnings than Farmland Partners. Communications Sales & Leasing,Inc. is trading at a lower price-to-earnings ratio than Farmland Partners, indicating that it is currently the more affordable of the two stocks.

Dividends

Farmland Partners pays an annual dividend of $0.51 per share and has a dividend yield of 5.8%. Communications Sales & Leasing,Inc. pays an annual dividend of $2.40 per share and has a dividend yield of 12.4%. Farmland Partners pays out 425.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Communications Sales & Leasing,Inc. pays out -750.0% of its earnings in the form of a dividend. Communications Sales & Leasing,Inc. has increased its dividend for 2 consecutive years. Communications Sales & Leasing,Inc. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Communications Sales & Leasing,Inc. beats Farmland Partners on 11 of the 17 factors compared between the two stocks.

About Farmland Partners

Farmland Partners, Inc. is an internally managed real estate company. The Company owns and seeks to acquire farmland located in agricultural markets throughout North America. The Company is the sole member of the general partner of Farmland Partners Operating Partnership, LP (the Operating Partnership). All of the Company’s assets are held by, and its operations are primarily conducted through, the Operating Partnership and the subsidiaries of the Operating Partnership. The Company’s principal investment focus is on farmland located in agricultural markets throughout North America, however, it may seek to acquire farmland outside of North America. It also may acquire properties related to farming, such as grain storage facilities, grain elevators, feedlots, cold storage facilities, processing plants and distribution centers, as well as livestock farms or ranches. As of December 31, 2016, the Company owned approximately 115,489 acres, as well as eight grain storage facilities.

About Communications Sales & Leasing,Inc.

Uniti Group Inc., formerly Communications Sales & Leasing, Inc., is an internally managed real estate investment trust engaged in the acquisition and construction of infrastructure in the communications industry. The Company focuses on acquiring and constructing fiber optic broadband networks, wireless communications towers, copper and coaxial broadband networks and data centers. It operates in four segments: Leasing, Fiber Infrastructure, Towers and Consumer Competitive Local Exchange Carrier (Consumer CLEC). The Leasing segment includes Uniti Leasing. The Fiber Infrastructure segment includes Uniti Fiber business. The Towers segment includes Uniti Towers and its ground lease investments. The Consumer CLEC segment includes Talk America. As of July 3, 2017, the Company and its subsidiaries owned approximately 88,100 fiber network route miles, representing approximately 4.8 million fiber strand miles and approximately 231,900 route miles of copper cable lines across 32 states.

What are top analysts saying about Farmland Partners Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Farmland Partners Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit