Reviewing Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) and NNN REIT (NYSE:NNN)

Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) and NNN REIT (NYSE:NNN) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Insider & Institutional Ownership

96.1% of Hannon Armstrong Sustainable Infrastructure Capital shares are owned by institutional investors. Comparatively, 90.0% of NNN REIT shares are owned by institutional investors. 2.3% of Hannon Armstrong Sustainable Infrastructure Capital shares are owned by company insiders. Comparatively, 0.8% of NNN REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.66 per share and has a dividend yield of 6.8%. NNN REIT pays an annual dividend of $2.26 per share and has a dividend yield of 5.7%. Hannon Armstrong Sustainable Infrastructure Capital pays out 123.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT pays out 104.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustainable Infrastructure Capital has increased its dividend for 6 consecutive years and NNN REIT has increased its dividend for 34 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Hannon Armstrong Sustainable Infrastructure Capital and NNN REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hannon Armstrong Sustainable Infrastructure Capital	0	2	5	0	2.71
NNN REIT	1	2	2	0	2.20

Hannon Armstrong Sustainable Infrastructure Capital presently has a consensus price target of $31.89, suggesting a potential upside of 30.69%. NNN REIT has a consensus price target of $44.50, suggesting a potential upside of 12.18%. Given Hannon Armstrong Sustainable Infrastructure Capital’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than NNN REIT.

Risk and Volatility

Hannon Armstrong Sustainable Infrastructure Capital has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, NNN REIT has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Earnings and Valuation

This table compares Hannon Armstrong Sustainable Infrastructure Capital and NNN REIT’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hannon Armstrong Sustainable Infrastructure Capital	$319.87 million	8.68	$148.84 million	$1.34	18.21
NNN REIT	$828.11 million	8.76	$392.34 million	$2.16	18.37

NNN REIT has higher revenue and earnings than Hannon Armstrong Sustainable Infrastructure Capital. Hannon Armstrong Sustainable Infrastructure Capital is trading at a lower price-to-earnings ratio than NNN REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hannon Armstrong Sustainable Infrastructure Capital and NNN REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hannon Armstrong Sustainable Infrastructure Capital	46.53%	10.93%	3.76%
NNN REIT	47.38%	9.45%	4.64%

Summary

NNN REIT beats Hannon Armstrong Sustainable Infrastructure Capital on 9 of the 17 factors compared between the two stocks.

About Hannon Armstrong Sustainable Infrastructure Capital

Hannon Armstrong Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment in energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company's portfolio includes equity investments, commercial and government receivables, real estate, and debt securities. It invests in climate solution, including Behind-the-Meter that distributes energy projects which reduce energy usage or cost through heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems; Grid-Connected, a renewable energy projects that deploy cleaner energy sources, such as solar, solar-plus-storage, and wind to generate power production; and Fuels, Transport, and Nature, a range of real assets spanning high-emitting economic sectors other than the power grid such as transportation and fuels comprising renewable natural gas plants, transportation fleet enhancements, ecological restoration, and other projects. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.