Reviewing CorEnergy Infrastructure Trust (CORR) and Communications Sales & Leasing,Inc. (NASDAQ:UNIT)

CorEnergy Infrastructure Trust (NYSE: CORR) and Communications Sales & Leasing,Inc. (NASDAQ:UNIT) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares CorEnergy Infrastructure Trust and Communications Sales & Leasing,Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CorEnergy Infrastructure Trust 42.81% 7.94% 5.85%
Communications Sales & Leasing,Inc. -4.32% N/A -1.01%

Valuation & Earnings

This table compares CorEnergy Infrastructure Trust and Communications Sales & Leasing,Inc.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
CorEnergy Infrastructure Trust $89.25 million 4.93 $29.66 million $2.30 16.06
Communications Sales & Leasing,Inc. $770.41 million 3.79 -$210,000.00 ($0.31) -53.65

CorEnergy Infrastructure Trust has higher revenue, but lower earnings than Communications Sales & Leasing,Inc.. Communications Sales & Leasing,Inc. is trading at a lower price-to-earnings ratio than CorEnergy Infrastructure Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for CorEnergy Infrastructure Trust and Communications Sales & Leasing,Inc., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CorEnergy Infrastructure Trust 1 2 0 0 1.67
Communications Sales & Leasing,Inc. 0 3 6 0 2.67

CorEnergy Infrastructure Trust presently has a consensus price target of $35.33, indicating a potential downside of 4.35%. Communications Sales & Leasing,Inc. has a consensus price target of $27.14, indicating a potential upside of 63.22%. Given Communications Sales & Leasing,Inc.’s stronger consensus rating and higher possible upside, analysts clearly believe Communications Sales & Leasing,Inc. is more favorable than CorEnergy Infrastructure Trust.

Risk and Volatility

CorEnergy Infrastructure Trust has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, Communications Sales & Leasing,Inc. has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Dividends

CorEnergy Infrastructure Trust pays an annual dividend of $3.00 per share and has a dividend yield of 8.1%. Communications Sales & Leasing,Inc. pays an annual dividend of $2.40 per share and has a dividend yield of 14.4%. CorEnergy Infrastructure Trust pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Communications Sales & Leasing,Inc. pays out -774.2% of its earnings in the form of a dividend. Communications Sales & Leasing,Inc. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

64.3% of CorEnergy Infrastructure Trust shares are owned by institutional investors. Comparatively, 67.5% of Communications Sales & Leasing,Inc. shares are owned by institutional investors. 1.0% of CorEnergy Infrastructure Trust shares are owned by company insiders. Comparatively, 0.4% of Communications Sales & Leasing,Inc. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

CorEnergy Infrastructure Trust beats Communications Sales & Leasing,Inc. on 9 of the 16 factors compared between the two stocks.

CorEnergy Infrastructure Trust Company Profile

CorEnergy Infrastructure Trust, Inc. (CorEnergy) is focused on acquiring and financing midstream and downstream real estate assets within the United States energy infrastructure sector and concurrently entering into long-term triple-net participating leases with energy companies. The Company also provides other types of capital, including loans secured by energy infrastructure assets. The Company owns assets, such as pipelines, storage terminals, and transmission and distribution assets. It assets include Grand Isle Gathering System, Pinedale Liquids Gathering System (Pinedale LGS), Portland Terminal Facility, MoGas Pipeline System and Omega Pipeline.

Communications Sales & Leasing,Inc. Company Profile

Uniti Group Inc., formerly Communications Sales & Leasing, Inc., is an internally managed real estate investment trust engaged in the acquisition and construction of infrastructure in the communications industry. The Company focuses on acquiring and constructing fiber optic broadband networks, wireless communications towers, copper and coaxial broadband networks and data centers. It operates in four segments: Leasing, Fiber Infrastructure, Towers and Consumer Competitive Local Exchange Carrier (Consumer CLEC). The Leasing segment includes Uniti Leasing. The Fiber Infrastructure segment includes Uniti Fiber business. The Towers segment includes Uniti Towers and its ground lease investments. The Consumer CLEC segment includes Talk America. As of July 3, 2017, the Company and its subsidiaries owned approximately 88,100 fiber network route miles, representing approximately 4.8 million fiber strand miles and approximately 231,900 route miles of copper cable lines across 32 states.

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