Hannon Armstrong Sustnbl Infrstr Cap (HASI) and QTS Realty Trust Inc Class A (QTS) Critical Analysis

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QTS Realty Trust Inc Class A (NYSE: HASI) and Hannon Armstrong Sustnbl Infrstr Cap (NYSE:HASI) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

QTS Realty Trust Inc Class A pays an annual dividend of $1.64 per share and has a dividend yield of 3.6%. Hannon Armstrong Sustnbl Infrstr Cap pays an annual dividend of $1.32 per share and has a dividend yield of 6.2%. QTS Realty Trust Inc Class A pays out 59.4% of its earnings in the form of a dividend. Hannon Armstrong Sustnbl Infrstr Cap pays out 125.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. QTS Realty Trust Inc Class A has increased its dividend for 3 consecutive years and Hannon Armstrong Sustnbl Infrstr Cap has increased its dividend for 4 consecutive years. Hannon Armstrong Sustnbl Infrstr Cap is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

QTS Realty Trust Inc Class A has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Hannon Armstrong Sustnbl Infrstr Cap has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for QTS Realty Trust Inc Class A and Hannon Armstrong Sustnbl Infrstr Cap, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QTS Realty Trust Inc Class A 0 7 8 0 2.53
Hannon Armstrong Sustnbl Infrstr Cap 0 0 7 0 3.00

QTS Realty Trust Inc Class A currently has a consensus price target of $48.50, suggesting a potential upside of 7.83%. Hannon Armstrong Sustnbl Infrstr Cap has a consensus price target of $25.71, suggesting a potential upside of 20.44%. Given Hannon Armstrong Sustnbl Infrstr Cap’s stronger consensus rating and higher probable upside, analysts plainly believe Hannon Armstrong Sustnbl Infrstr Cap is more favorable than QTS Realty Trust Inc Class A.

Valuation and Earnings

This table compares QTS Realty Trust Inc Class A and Hannon Armstrong Sustnbl Infrstr Cap’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QTS Realty Trust Inc Class A $446.51 million 5.14 $1.28 million $2.76 16.30
Hannon Armstrong Sustnbl Infrstr Cap $105.57 million 10.93 $30.85 million $1.05 20.33

Hannon Armstrong Sustnbl Infrstr Cap has lower revenue, but higher earnings than QTS Realty Trust Inc Class A. QTS Realty Trust Inc Class A is trading at a lower price-to-earnings ratio than Hannon Armstrong Sustnbl Infrstr Cap, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

70.3% of Hannon Armstrong Sustnbl Infrstr Cap shares are held by institutional investors. 16.1% of QTS Realty Trust Inc Class A shares are held by company insiders. Comparatively, 5.3% of Hannon Armstrong Sustnbl Infrstr Cap shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares QTS Realty Trust Inc Class A and Hannon Armstrong Sustnbl Infrstr Cap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QTS Realty Trust Inc Class A -2.90% 1.46% 0.65%
Hannon Armstrong Sustnbl Infrstr Cap 23.33% 8.84% 2.52%

Summary

Hannon Armstrong Sustnbl Infrstr Cap beats QTS Realty Trust Inc Class A on 12 of the 17 factors compared between the two stocks.

QTS Realty Trust Inc Class A Company Profile

QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of secure, compliant data center solutions, hybrid cloud and fully managed services. QTS' integrated technology service platform of hyperscale and hybrid colocation provide flexible, scalable, secure IT solutions for web and IT applications. QTS' Critical Facilities Management (CFM) provides increased efficiency and greater performance for third-party data center owners and operators. QTS owns, operates or manages 26 data centers and supports more than 1,000 Core customers primarily in North America.

Hannon Armstrong Sustnbl Infrstr Cap Company Profile

Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include energy efficiency projects that reduce a building's or facility's energy usage or cost through enhancing or installing various building components, including heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. Its projects also comprise renewable energy projects, which deploy cleaner energy sources, such as solar and wind to generate power production; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and seismic retrofits and other projects. The company qualifies as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Hannon Armstrong Sustainable Infrastructure Capital, Inc. is headquartered in Annapolis, Maryland.

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