Contrasting Stag Industrial (STAG) and Its Competitors

Stag Industrial (NYSE:STAG) is one of 50 publicly-traded companies in the “Industrial REITs” industry, but how does it contrast to its peers? We will compare Stag Industrial to related companies based on the strength of its profitability, earnings, dividends, institutional ownership, analyst recommendations, valuation and risk.

Risk and Volatility

Stag Industrial has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Stag Industrial’s peers have a beta of 1.04, suggesting that their average stock price is 4% more volatile than the S&P 500.

Institutional and Insider Ownership

88.7% of Stag Industrial shares are held by institutional investors. Comparatively, 61.7% of shares of all “Industrial REITs” companies are held by institutional investors. 1.1% of Stag Industrial shares are held by company insiders. Comparatively, 5.6% of shares of all “Industrial REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Stag Industrial and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stag Industrial	1	5	4	0	2.30
Stag Industrial Competitors	416	2300	2547	75	2.43

Stag Industrial presently has a consensus target price of $41.20, indicating a potential upside of 8.86%. As a group, “Industrial REITs” companies have a potential upside of 44.22%. Given Stag Industrial’s peers stronger consensus rating and higher possible upside, analysts clearly believe Stag Industrial has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Stag Industrial and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stag Industrial	$845.18 million	$273.52 million	26.84
Stag Industrial Competitors	$999.88 million	$263.98 million	54.24

Stag Industrial’s peers have higher revenue, but lower earnings than Stag Industrial. Stag Industrial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.1%. Stag Industrial pays out 109.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Industrial REITs” companies pay a dividend yield of 4.4% and pay out 104.3% of their earnings in the form of a dividend. Stag Industrial has raised its dividend for 7 consecutive years. Stag Industrial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Stag Industrial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stag Industrial	29.88%	7.28%	3.66%
Stag Industrial Competitors	37.13%	4.73%	2.33%

Summary

Stag Industrial peers beat Stag Industrial on 11 of the 15 factors compared.

Stag Industrial Company Profile

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.