Critical Review: Crown Castle International (CCI) versus The Competition

Crown Castle International (NYSE: CCI) is one of 230 public companies in the “Real estate investment trusts” industry, but how does it compare to its rivals? We will compare Crown Castle International to related businesses based on the strength of its institutional ownership, risk, earnings, analyst recommendations, valuation, profitability and dividends.

Dividends

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Crown Castle International pays an annual dividend of $4.20 per share and has a dividend yield of 4.0%. Crown Castle International pays out 86.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.8% and pay out 71.8% of their earnings in the form of a dividend. Crown Castle International has increased its dividend for 3 consecutive years. Crown Castle International lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Crown Castle International and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crown Castle International 10.21% 4.95% 1.77%
Crown Castle International Competitors 23.75% 7.13% 2.68%

Earnings and Valuation

This table compares Crown Castle International and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Crown Castle International $4.36 billion $444.55 million 21.83
Crown Castle International Competitors $794.88 million $176.08 million 14.10

Crown Castle International has higher revenue and earnings than its rivals. Crown Castle International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

93.6% of Crown Castle International shares are held by institutional investors. Comparatively, 73.1% of shares of all “Real estate investment trusts” companies are held by institutional investors. 0.4% of Crown Castle International shares are held by company insiders. Comparatively, 7.1% of shares of all “Real estate investment trusts” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Crown Castle International and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crown Castle International 0 7 9 0 2.56
Crown Castle International Competitors 1505 7791 8424 218 2.41

Crown Castle International presently has a consensus price target of $112.73, suggesting a potential upside of 6.46%. As a group, “Real estate investment trusts” companies have a potential upside of 11.85%. Given Crown Castle International’s rivals higher possible upside, analysts clearly believe Crown Castle International has less favorable growth aspects than its rivals.

Risk & Volatility

Crown Castle International has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Crown Castle International’s rivals have a beta of 0.56, indicating that their average stock price is 44% less volatile than the S&P 500.

Summary

Crown Castle International rivals beat Crown Castle International on 9 of the 15 factors compared.

About Crown Castle International

Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 60,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service bringing information, ideas and innovations to the people and businesses that need them. For more information on Crown Castle, please visit www.crowncastle.com.

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