Head-to-head review: SBA Communications (NASDAQ: SBAC) and Kilroy Realty (NYSE: KRC)
Communication SBA (NASDAQ: SBAC – Get a rating) and Kilroy Realty (NYSE: KRC – Get a rating) are both finance companies, but which is the better investment? We’ll compare the two companies based on valuation strength, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
SBA Communications pays an annual dividend of $2.84 per share and has a dividend yield of 0.8%. Kilroy Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.0%. SBA Communications pays 71.7% of its profits as a dividend. Kilroy Realty pays 134.2% of its income as a dividend, suggesting it may not have enough income to cover its dividend payment in the future. SBA Communications has increased its dividend for 3 consecutive years and Kilroy Realty has increased its dividend for 6 consecutive years. Kilroy Realty is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and risk
SBA Communications has a beta of 0.44, which means its stock price is 56% less volatile than the S&P 500. By comparison, Kilroy Realty has a beta of 0.74, which means its stock price is 26% less volatile than the S&P 500.
Valuation and benefits
This chart compares gross revenue, earnings per share (EPS), and valuation of SBA Communications and Kilroy Realty.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|SBA Communications||$2.31 billion||16.22||$237.62 million||$3.96||87.65|
|Kilroy Realty||$955.04 million||8.56||$628.14 million||$1.55||45.16|
Kilroy Realty has lower earnings, but higher earnings than SBA Communications. Kilroy Realty trades at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of SBA Communications and Kilroy Realty.
|Net margins||Return on equity||return on assets|
This is a summary of current SBA Communications and Kilroy Realty ratings, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
SBA Communications currently has a consensus target price of $392.67, suggesting a potential upside of 13.12%. Kilroy Realty has a consensus target price of $80.43, suggesting a potential upside of 14.90%. Given Kilroy Realty’s possible higher upside, analysts clearly believe that Kilroy Realty is more favorable than SBA Communications.
Institutional and insider ownership
94.0% of SBA Communications shares are held by institutional investors. By comparison, 91.5% of Kilroy Realty’s shares are held by institutional investors. 1.8% of SBA Communications shares are held by insiders of the company. By comparison, 2.0% of the shares of Kilroy Realty are held by insiders of the company. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.
SBA Communications beats Kilroy Realty on 10 of the 18 factors compared between the two stocks.
SBA Communications Company Profile (Get a rating)
SBA Communications Corporation is a premier provider and owner and operator of wireless communications infrastructure in North, Central and South America and South Africa. In “Building Better Wireless”, SBA generates revenues from two main activities: site rental and site development services. The Company’s primary objective is to lease antenna space at its multi-tenant communications sites to various wireless service providers under long-term lease agreements. For more information, visit: www.sbasite.com.
Company Profile Kilroy Realty (Get a rating)
Kilroy Realty Corporation (NYSE: KRC, the Company, KRC) is a leading West Coast landlord and developer, with a major presence in San Diego, Greater Los Angeles, San Francisco Bay Area and in the Pacific Northwest. The company has gained global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in creating a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity, productivity and employee retention for some of the world’s leading technology companies. , entertainment, life sciences and business services. KRC is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with over seven decades of experience developing, acquiring and managing office and mixed-use projects. As of September 30, 2020, KRC’s stabilized portfolio totaled approximately 14.3 million square feet of office and life sciences space, 92.2% occupied and 95.5% leased. The company also owned 808 residential units in Hollywood and San Diego, which had quarterly average occupancy rates of 85.0% and 37.5%, respectively. Additionally, KRC had seven development projects underway with an estimated total investment of $1.9 billion, totaling approximately 2.3 million square feet of office and life sciences space. Life sciences offices and space were 90% leased.
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