Communications Sales & Leasing,Inc. (NASDAQ: UNIT) and Jernigan Capital (NYSE:JCAP) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Risk & Volatility
Communications Sales & Leasing,Inc. has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Jernigan Capital has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Valuation and Earnings
This table compares Communications Sales & Leasing,Inc. and Jernigan Capital’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Communications Sales & Leasing,Inc.||$831.65 million||4.04||$681.10 million||($0.32)||-59.91|
|Jernigan Capital||$7.80 million||34.70||$28.62 million||$2.01||9.46|
Communications Sales & Leasing,Inc. has higher revenue and earnings than Jernigan Capital. Communications Sales & Leasing,Inc. is trading at a lower price-to-earnings ratio than Jernigan Capital, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
58.1% of Communications Sales & Leasing,Inc. shares are held by institutional investors. Comparatively, 46.7% of Jernigan Capital shares are held by institutional investors. 0.4% of Communications Sales & Leasing,Inc. shares are held by insiders. Comparatively, 3.2% of Jernigan Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Communications Sales & Leasing,Inc. and Jernigan Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Communications Sales & Leasing,Inc.||0||1||8||1||3.00|
Communications Sales & Leasing,Inc. presently has a consensus price target of $31.14, suggesting a potential upside of 62.46%. Jernigan Capital has a consensus price target of $25.33, suggesting a potential upside of 33.26%. Given Communications Sales & Leasing,Inc.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Communications Sales & Leasing,Inc. is more favorable than Jernigan Capital.
Communications Sales & Leasing,Inc. pays an annual dividend of $2.40 per share and has a dividend yield of 12.5%. Jernigan Capital pays an annual dividend of $1.40 per share and has a dividend yield of 7.4%. Communications Sales & Leasing,Inc. pays out -750.0% of its earnings in the form of a dividend. Jernigan Capital pays out 69.7% 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. Communications Sales & Leasing,Inc. is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Communications Sales & Leasing,Inc. and Jernigan Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Communications Sales & Leasing,Inc.||-5.41%||N/A||-1.29%|
Communications Sales & Leasing,Inc. beats Jernigan Capital on 10 of the 17 factors compared between the two stocks.
Communications Sales & Leasing,Inc. Company Profile
Uniti Group Inc., formerly Communications Sales & Leasing, Inc., is an internally managed real estate investment trust engaged in the acquisition and construction of infrastructure in the communications industry. The Company focuses on acquiring and constructing fiber optic broadband networks, wireless communications towers, copper and coaxial broadband networks and data centers. It operates in four segments: Leasing, Fiber Infrastructure, Towers and Consumer Competitive Local Exchange Carrier (Consumer CLEC). The Leasing segment includes Uniti Leasing. The Fiber Infrastructure segment includes Uniti Fiber business. The Towers segment includes Uniti Towers and its ground lease investments. The Consumer CLEC segment includes Talk America. As of July 3, 2017, the Company and its subsidiaries owned approximately 88,100 fiber network route miles, representing approximately 4.8 million fiber strand miles and approximately 231,900 route miles of copper cable lines across 32 states.
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.
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