Acadia Realty Trust (NASDAQ: EQIX) and Equinix (NASDAQ:EQIX) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Risk and Volatility
Acadia Realty Trust has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Equinix has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.
Acadia Realty Trust pays an annual dividend of $1.08 per share and has a dividend yield of 3.8%. Equinix pays an annual dividend of $9.12 per share and has a dividend yield of 2.1%. Acadia Realty Trust pays out 71.5% of its earnings in the form of a dividend. Equinix pays out 49.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Acadia Realty Trust has increased its dividend for 5 consecutive years and Equinix has increased its dividend for 2 consecutive years. Acadia Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Acadia Realty Trust and Equinix’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Acadia Realty Trust||$250.26 million||9.27||$60.82 million||$1.51||18.85|
|Equinix||$4.37 billion||7.98||$232.98 million||$18.53||23.66|
Equinix has higher revenue and earnings than Acadia Realty Trust. Acadia Realty Trust is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Acadia Realty Trust and Equinix, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Acadia Realty Trust||0||2||1||0||2.33|
Acadia Realty Trust currently has a consensus target price of $31.00, suggesting a potential upside of 8.89%. Equinix has a consensus target price of $508.45, suggesting a potential upside of 16.00%. Given Equinix’s stronger consensus rating and higher probable upside, analysts clearly believe Equinix is more favorable than Acadia Realty Trust.
Institutional and Insider Ownership
97.4% of Equinix shares are owned by institutional investors. 2.2% of Acadia Realty Trust shares are owned by insiders. Comparatively, 0.5% of Equinix shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Acadia Realty Trust and Equinix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Acadia Realty Trust||19.11%||2.25%||1.23%|
Equinix beats Acadia Realty Trust on 12 of the 17 factors compared between the two stocks.
About Acadia Realty Trust
Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual – Core and Fund – operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic urban and street-retail corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet. For further information, please visit www.acadiarealty.com.
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most-interconnected data centers. In 48 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies.
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