SBA Communications (NASDAQ:SBAC) versus Equity Commonwealth (NYSE:EQC) Financial Analysis

Equity Commonwealth (NYSE:EQCGet Free Report) and SBA Communications (NASDAQ:SBACGet Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares Equity Commonwealth and SBA Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity Commonwealth 168.05% 4.39% 4.12%
SBA Communications 19.22% -9.85% 5.11%

Institutional & Insider Ownership

96.0% of Equity Commonwealth shares are held by institutional investors. Comparatively, 97.3% of SBA Communications shares are held by institutional investors. 2.8% of Equity Commonwealth shares are held by insiders. Comparatively, 1.3% of SBA Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Equity Commonwealth and SBA Communications”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity Commonwealth $59.66 million 35.67 $91.16 million $0.79 25.10
SBA Communications $2.68 billion 9.94 $501.81 million $5.10 48.52

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

Risk & Volatility

Equity Commonwealth has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, SBA Communications has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Equity Commonwealth and SBA Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity Commonwealth 0 0 0 0 N/A
SBA Communications 0 3 9 0 2.75

SBA Communications has a consensus target price of $251.58, suggesting a potential upside of 1.66%. Given SBA Communications’ higher possible upside, analysts plainly believe SBA Communications is more favorable than Equity Commonwealth.

Summary

SBA Communications beats Equity Commonwealth on 9 of the 13 factors compared between the two stocks.

About Equity Commonwealth

(Get Free Report)

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's portfolio is comprised of four properties totaling 1.5 million square feet.

About SBA Communications

(Get Free Report)

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.

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