Financial Review: Hannon Armstrong Sustainable Infrastructure Capital (HASI) vs. Columbia Property Trust (CXP)

Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI) and Columbia Property Trust (NYSE:CXP) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Hannon Armstrong Sustainable Infrastructure Capital and Columbia Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hannon Armstrong Sustainable Infrastructure Capital 32.42% 8.71% 2.69%
Columbia Property Trust 63.37% 8.10% 4.91%

Dividends

Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.32 per share and has a dividend yield of 5.7%. Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. Hannon Armstrong Sustainable Infrastructure Capital pays out 220.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Columbia Property Trust pays out 47.6% of its earnings in the form of a dividend. Columbia Property Trust has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Hannon Armstrong Sustainable Infrastructure Capital and Columbia Property Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hannon Armstrong Sustainable Infrastructure Capital 0 1 6 0 2.86
Columbia Property Trust 0 2 5 0 2.71

Hannon Armstrong Sustainable Infrastructure Capital currently has a consensus price target of $25.67, indicating a potential upside of 10.11%. Given Hannon Armstrong Sustainable Infrastructure Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than Columbia Property Trust.

Valuation & Earnings

This table compares Hannon Armstrong Sustainable Infrastructure Capital and Columbia Property Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Hannon Armstrong Sustainable Infrastructure Capital $81.20 15.23 $14.65 $0.60 38.85
Columbia Property Trust $473.54 5.61 $84.28 $1.68 13.20

Columbia Property Trust has higher revenue and earnings than Hannon Armstrong Sustainable Infrastructure Capital. Columbia Property Trust is trading at a lower price-to-earnings ratio than Hannon Armstrong Sustainable Infrastructure Capital, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

72.7% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by institutional investors. Comparatively, 65.1% of Columbia Property Trust shares are held by institutional investors. 5.4% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by company insiders. Comparatively, 0.5% of Columbia Property Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Hannon Armstrong Sustainable Infrastructure Capital has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Columbia Property Trust has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Hannon Armstrong Sustainable Infrastructure Capital beats Columbia Property Trust on 9 of the 17 factors compared between the two stocks.

Hannon Armstrong Sustainable Infrastructure Capital Company Profile

Hannon Armstrong Sustainable Infrastructure Capital, Inc. makes debt and equity investments in sustainable infrastructure, including energy efficiency and renewable energy. The Company focuses on providing preferred or senior level capital to sponsors and obligors for assets that generate long-term, recurring and predictable cash flows. The Company focuses its investment activities primarily on Energy Efficiency Projects, which include projects typically undertaken by energy service companies, which reduce a building’s or facility’s energy usage or cost by installing various building components, including heating, ventilation and air conditioning systems, lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems, and Renewable Energy Projects, which include projects that deploy cleaner energy sources, such as solar and wind to generate power production. It may also invest in other projects, such as water or communications infrastructure.

Columbia Property Trust Company Profile

Columbia Property Trust, Inc. operates as a real estate investment trust (REIT), which owns and operates commercial real estate properties. The Company’s primary objective is to generate long-term shareholder returns from a combination of steadily growing cash flows and appreciation in its net asset values, through the acquisition and ownership of office buildings located principally in high-barrier-to-entry markets. The Company’s segments include New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles and all other office markets. The all other office markets segment consists of properties in similar, low-barrier to entry geographic locations, in which the Company does not plan to make further investments. The Company conducts its business primarily through Columbia Property Trust Operating Partnership, L.P. (Columbia Property Trust OP), which acquires, develops, owns, leases and operates real properties directly through subsidiaries or through joint ventures.

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