American Campus Communities (ACC) and SBA Communications (SBAC) Critical Analysis

Share on StockTwits

American Campus Communities (NYSE:ACC) and SBA Communications (NASDAQ:SBAC) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for American Campus Communities and SBA Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Campus Communities 1 3 8 0 2.58
SBA Communications 0 4 7 0 2.64

American Campus Communities currently has a consensus target price of $46.05, indicating a potential upside of 17.67%. SBA Communications has a consensus target price of $178.90, indicating a potential upside of 16.19%. Given American Campus Communities’ higher probable upside, research analysts clearly believe American Campus Communities is more favorable than SBA Communications.

Dividends

American Campus Communities pays an annual dividend of $1.84 per share and has a dividend yield of 4.7%. SBA Communications does not pay a dividend. American Campus Communities pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Campus Communities has increased its dividend for 5 consecutive years.

Profitability

This table compares American Campus Communities and SBA Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Campus Communities 12.97% 3.29% 1.70%
SBA Communications 1.73% -1.26% 0.45%

Valuation and Earnings

This table compares American Campus Communities and SBA Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Campus Communities $796.45 million 6.73 $69.03 million $2.31 16.94
SBA Communications $1.73 billion 10.23 $103.65 million N/A N/A

SBA Communications has higher revenue and earnings than American Campus Communities.

Insider & Institutional Ownership

97.9% of American Campus Communities shares are owned by institutional investors. Comparatively, 94.9% of SBA Communications shares are owned by institutional investors. 0.6% of American Campus Communities shares are owned by insiders. Comparatively, 2.7% of SBA Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

American Campus Communities has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, SBA Communications has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Summary

American Campus Communities beats SBA Communications on 8 of the 15 factors compared between the two stocks.

American Campus Communities Company Profile

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of June 30, 2018, American Campus Communities owned 168 student housing properties containing approximately 103,500 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 202 properties with approximately 131,900 beds.

SBA Communications Company Profile

SBA Communications Corporation is a first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America. By "Building Better Wireless," SBA generates revenue from two primary businesses – site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant communication sites to a variety of wireless service providers under long-term lease contracts.

Receive News & Ratings for American Campus Communities Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Campus Communities and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply