Head-To-Head Survey: Seritage Growth Properties (NYSE:SRG) versus SBA Communications (NASDAQ:SBAC)

SBA Communications (NASDAQ:SBAC) and Seritage Growth Properties (NYSE:SRG) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Risk and Volatility

SBA Communications has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500.

Earnings and Valuation

This table compares SBA Communications and Seritage Growth Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBA Communications	$2.68 billion	7.65	$749.54 million	$7.67	25.10
Seritage Growth Properties	$17.62 million	10.85	-$153.54 million	($1.42)	-2.39

SBA Communications has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

97.4% of SBA Communications shares are held by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are held by institutional investors. 0.9% of SBA Communications shares are held by company insiders. Comparatively, 0.6% of Seritage Growth Properties shares are held by company 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.

Analyst Recommendations

This is a breakdown of current recommendations for SBA Communications and Seritage Growth Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBA Communications	0	8	8	2	2.67
Seritage Growth Properties	1	0	0	0	1.00

SBA Communications currently has a consensus price target of $237.00, suggesting a potential upside of 23.13%. Given SBA Communications’ stronger consensus rating and higher probable upside, analysts plainly believe SBA Communications is more favorable than Seritage Growth Properties.

Profitability

This table compares SBA Communications and Seritage Growth Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBA Communications	29.69%	-16.60%	7.55%
Seritage Growth Properties	-404.37%	-20.13%	-12.10%

Summary

SBA Communications beats Seritage Growth Properties on 13 of the 15 factors compared between the two stocks.

About SBA Communications

SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.