Contrasting PotlatchDeltic (NASDAQ:PCH) & Uniti Group (NASDAQ:UNIT)

PotlatchDeltic (NASDAQ:PCH) and Uniti Group (NASDAQ:UNIT) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares PotlatchDeltic and Uniti Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PotlatchDeltic	1.56%	0.78%	0.49%
Uniti Group	8.82%	-4.12%	2.02%

Dividends

PotlatchDeltic pays an annual dividend of $1.80 per share and has a dividend yield of 4.6%. Uniti Group pays an annual dividend of $0.45 per share and has a dividend yield of 8.3%. PotlatchDeltic pays out 857.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Uniti Group pays out 109.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Uniti Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for PotlatchDeltic and Uniti Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PotlatchDeltic	0	1	4	0	2.80
Uniti Group	0	1	2	0	2.67

PotlatchDeltic presently has a consensus target price of $48.20, indicating a potential upside of 23.59%. Uniti Group has a consensus target price of $7.33, indicating a potential upside of 35.05%. Given Uniti Group’s higher possible upside, analysts clearly believe Uniti Group is more favorable than PotlatchDeltic.

Valuation and Earnings

This table compares PotlatchDeltic and Uniti Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PotlatchDeltic	$1.06 billion	2.90	$62.10 million	$0.21	185.71
Uniti Group	$1.16 billion	1.14	-$81.71 million	$0.41	13.24

PotlatchDeltic has higher earnings, but lower revenue than Uniti Group. Uniti Group is trading at a lower price-to-earnings ratio than PotlatchDeltic, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

PotlatchDeltic has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Uniti Group has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Insider & Institutional Ownership

86.1% of PotlatchDeltic shares are owned by institutional investors. Comparatively, 87.5% of Uniti Group shares are owned by institutional investors. 2.0% of PotlatchDeltic shares are owned by company insiders. Comparatively, 1.4% of Uniti Group 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.

Summary

Uniti Group beats PotlatchDeltic on 9 of the 16 factors compared between the two stocks.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance.

About Uniti Group

Uniti Group, Inc. is a real estate investment trust company, which engages in the acquisition, construction, and leasing of properties. It operates through the following business segments: Uniti Leasing, Uniti Fiber, and Corporate. The Uniti Leasing segment involves mission-critical communications assets on exclusive or shared-tenant basis, and dark fiber network. The Uniti Fiber segment includes the operation of infrastructure solutions, cell site backhauls, and dark fiber. The Corporate segment consists of office and shared service functions. The company was founded in February 2014 and is headquartered in Little Rock, AR.