Jernigan Capital (NYSE: JCAP) and American Tower Corporation (REIT) (NYSE:AMT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitabiliy, valuation, analyst recommendations, dividends, earnings and risk.

Valuation & Earnings

This table compares Jernigan Capital and American Tower Corporation (REIT)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jernigan Capital $7.80 million 39.21 $28.62 million $2.01 10.69
American Tower Corporation (REIT) $6.33 billion 9.35 $3.74 billion $2.49 55.36

American Tower Corporation (REIT) has higher revenue and earnings than Jernigan Capital. Jernigan Capital is trading at a lower price-to-earnings ratio than American Tower Corporation (REIT), indicating that it is currently the more affordable of the two stocks.

Dividends

Jernigan Capital pays an annual dividend of $1.40 per share and has a dividend yield of 6.5%. American Tower Corporation (REIT) pays an annual dividend of $2.56 per share and has a dividend yield of 1.9%. Jernigan Capital pays out 69.7% of its earnings in the form of a dividend. American Tower Corporation (REIT) pays out 102.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jernigan Capital has raised its dividend for 5 consecutive years. Jernigan Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Jernigan Capital and American Tower Corporation (REIT)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jernigan Capital 185.96% 11.47% 9.47%
American Tower Corporation (REIT) 18.58% 16.70% 3.74%

Risk & Volatility

Jernigan Capital has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, American Tower Corporation (REIT) has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Jernigan Capital and American Tower Corporation (REIT), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jernigan Capital 0 1 2 0 2.67
American Tower Corporation (REIT) 0 0 11 0 3.00

Jernigan Capital presently has a consensus price target of $25.33, suggesting a potential upside of 17.94%. American Tower Corporation (REIT) has a consensus price target of $141.82, suggesting a potential upside of 2.88%. Given Jernigan Capital’s higher probable upside, equities analysts plainly believe Jernigan Capital is more favorable than American Tower Corporation (REIT).

Insider and Institutional Ownership

40.9% of Jernigan Capital shares are owned by institutional investors. Comparatively, 93.4% of American Tower Corporation (REIT) shares are owned by institutional investors. 3.2% of Jernigan Capital shares are owned by company insiders. Comparatively, 0.9% of American Tower Corporation (REIT) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Jernigan Capital beats American Tower Corporation (REIT) on 9 of the 17 factors compared between the two stocks.

Jernigan Capital Company Profile

Jernigan Capital, Inc. is a commercial real estate finance company. The Company provides capital to private developers, owners and operators of self-storage facilities. It intends to generate long-term returns on development property investments through a fixed rate of interest on its invested capital together with an interest in the positive cash flows of the self-storage development from operations, sales and/or refinancings. It generates cash flows from construction loans and operating property loans in the form of a fixed interest rate and origination fees. It originates various loans, such as bridge loans and credit lines. It has development property investments in Orlando, Atlanta, Tampa, Chicago and Miami. Its operating property loans are located in New Orleans, Newark, Nashville, Sacramento and Chicago. The Company conducts its investment activities through Jernigan Capital Operating Company, LLC. The Company is externally managed and advised by JCap Advisors, LLC.

American Tower Corporation (REIT) Company Profile

American Tower Corporation (ATC) is a holding company. The Company operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. ATC’s segments include U.S. property, Asia property, EMEA property, Latin America property, Services and Other. Its primary business is property operations, which include the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities, and tenants in various other industries. Its U.S. property segment includes operations in the United States. Its Asia property segment includes operations in India. The EMEA property segment includes operations in Germany, Ghana, Nigeria, South Africa and Uganda. The Latin America property segment includes operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. Its services segment offers tower-related services in the United States.

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