CROWN CASTLE IN/SH SH (NYSE:CCI) vs. istar (NYSE:STAR) Head-To-Head Analysis

CROWN CASTLE IN/SH SH (NYSE:CCI) and istar (NYSE:STAR) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Profitability

This table compares CROWN CASTLE IN/SH SH and istar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CROWN CASTLE IN/SH SH 14.62% 7.00% 2.36%
istar -14.17% -5.87% -1.31%

Risk and Volatility

CROWN CASTLE IN/SH SH has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, istar has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

92.1% of CROWN CASTLE IN/SH SH shares are owned by institutional investors. Comparatively, 90.0% of istar shares are owned by institutional investors. 0.4% of CROWN CASTLE IN/SH SH shares are owned by company insiders. Comparatively, 5.2% of istar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

CROWN CASTLE IN/SH SH pays an annual dividend of $4.50 per share and has a dividend yield of 3.4%. istar pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. CROWN CASTLE IN/SH SH pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. istar pays out -42.1% of its earnings in the form of a dividend. CROWN CASTLE IN/SH SH has raised its dividend for 4 consecutive years. CROWN CASTLE IN/SH SH is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares CROWN CASTLE IN/SH SH and istar’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CROWN CASTLE IN/SH SH $5.42 billion 10.26 $671.00 million $5.48 24.42
istar $798.12 million 1.09 -$32.26 million ($0.95) -14.20

CROWN CASTLE IN/SH SH has higher revenue and earnings than istar. istar is trading at a lower price-to-earnings ratio than CROWN CASTLE IN/SH SH, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for CROWN CASTLE IN/SH SH and istar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CROWN CASTLE IN/SH SH 1 7 5 0 2.31
istar 0 1 1 0 2.50

CROWN CASTLE IN/SH SH presently has a consensus target price of $126.70, indicating a potential downside of 5.33%. istar has a consensus target price of $11.50, indicating a potential downside of 14.75%. Given CROWN CASTLE IN/SH SH’s higher probable upside, equities research analysts clearly believe CROWN CASTLE IN/SH SH is more favorable than istar.

Summary

CROWN CASTLE IN/SH SH beats istar on 13 of the 17 factors compared between the two stocks.

About CROWN CASTLE IN/SH SH

Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 70,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service – bringing information, ideas and innovations to the people and businesses that need them.

About istar

iStar (NYSE: STAR) finances, invests in and develops real estate and real estate related projects as part of its fully-integrated investment platform. Building on over two decades of experience and $40 billion of transactions, iStar brings uncommon capabilities and new ways of thinking to commercial real estate and adapts its investment strategy to changing market conditions. The Company is structured as a real estate investment trust ("REIT"), with a diversified portfolio focused on larger assets located in major metropolitan markets.

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