Analyzing W.P. Carey (WPC) and Lamar Advertising (NASDAQ:LAMR)
W.P. Carey (NYSE: WPC) and Lamar Advertising (NASDAQ:LAMR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitabiliy, risk, analyst recommendations and dividends.
Institutional & Insider Ownership
49.1% of W.P. Carey shares are owned by institutional investors. Comparatively, 85.8% of Lamar Advertising shares are owned by institutional investors. 1.7% of W.P. Carey shares are owned by insiders. Comparatively, 18.7% of Lamar Advertising shares are owned by 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.
Earnings and Valuation
This table compares W.P. Carey and Lamar Advertising’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|W.P. Carey||$884.11 million||8.19||$715.85 million||$2.48||27.42|
W.P. Carey has higher revenue and earnings than Lamar Advertising. Lamar Advertising is trading at a lower price-to-earnings ratio than W.P. Carey, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
W.P. Carey has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Lamar Advertising has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
W.P. Carey pays an annual dividend of $4.00 per share and has a dividend yield of 5.9%. Lamar Advertising pays an annual dividend of $3.32 per share and has a dividend yield of 4.6%. W.P. Carey pays out 161.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lamar Advertising pays out 112.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lamar Advertising has increased its dividend for 16 consecutive years.
This table compares W.P. Carey and Lamar Advertising’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for W.P. Carey and Lamar Advertising, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
W.P. Carey presently has a consensus target price of $67.67, indicating a potential downside of 0.49%. Lamar Advertising has a consensus target price of $75.75, indicating a potential upside of 4.83%. Given Lamar Advertising’s stronger consensus rating and higher possible upside, analysts clearly believe Lamar Advertising is more favorable than W.P. Carey.
Lamar Advertising beats W.P. Carey on 11 of the 14 factors compared between the two stocks.
About W.P. Carey
W. P. Carey provides long-term, sale-leaseback and build-to-suit transactions for companies worldwide, and manages a global investment portfolio. It has two primary business segments. Under the investment management segment, the Company earns revenue as the advisor to publicly owned, non-actively traded real estate investment trusts (REITs), which are sponsored by the Company under the Corporate Property Associates brand name (the CPA REITs) and invests in similar properties. Under the real estate ownership segment, the Company owns and invests in commercial properties in the United States and the European Union that are then leased to companies, primarily on a single-tenant, triple-net leased basis. As of December 31, 2009, it operated as advisor to Corporate Property Associates 14 Incorporated, Corporate Property Associates 15 Incorporated, Corporate Property Associates 16 – Global Incorporated and Corporate Property Associates 17 – Global Incorporated.
About Lamar Advertising
Lamar Advertising Company is an outdoor advertising company in the United States. The Company operates in the advertising segment. The Company sells advertising on billboards, buses, shelters, benches and logo plates. It operates three types of outdoor advertising displays: billboards, logo signs and transit advertising displays. As of December 31, 2012, the Company owned and operated over 144,000 billboard advertising displays in 44 states, Canada and Puerto Rico, over 115,000 logo advertising displays in 22 states and the province of Ontario, Canada, and operated over 34,000 transit advertising displays in 15 states, Canada and Puerto Rico. In August 2014, the Company acquired the assets of Marco Outdoor Advertising, Inc.
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