Financial Contrast: Stag Industrial (STAG) versus The Competition

Stag Industrial (NYSE:STAG) is one of 50 public companies in the “Industrial REITs” industry, but how does it compare to its rivals? We will compare Stag Industrial to similar companies based on the strength of its dividends, analyst recommendations, risk, earnings, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

88.7% of Stag Industrial shares are owned by institutional investors. Comparatively, 61.8% of shares of all “Industrial REITs” companies are owned by institutional investors. 1.1% of Stag Industrial shares are owned by company insiders. Comparatively, 5.6% of shares of all “Industrial REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Stag Industrial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stag Industrial	29.88%	7.28%	3.66%
Stag Industrial Competitors	37.85%	5.72%	2.66%

Earnings and Valuation

This table compares Stag Industrial and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stag Industrial	$845.18 million	$273.52 million	26.69
Stag Industrial Competitors	$1.03 billion	$263.98 million	56.52

Stag Industrial’s rivals have higher revenue, but lower earnings than Stag Industrial. Stag Industrial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Stag Industrial and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stag Industrial	1	4	4	0	2.33
Stag Industrial Competitors	419	2302	2551	75	2.43

Stag Industrial currently has a consensus price target of $41.11, suggesting a potential upside of 9.24%. As a group, “Industrial REITs” companies have a potential upside of 46.22%. Given Stag Industrial’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Stag Industrial has less favorable growth aspects than its rivals.

Volatility and Risk

Stag Industrial has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Stag Industrial’s rivals have a beta of 1.04, meaning that their average share price is 4% more volatile than the S&P 500.

Dividends

Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.1%. Stag Industrial pays out 109.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Industrial REITs” companies pay a dividend yield of 4.5% and pay out 103.3% of their earnings in the form of a dividend. Stag Industrial has raised its dividend for 7 consecutive years. Stag Industrial lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Stag Industrial rivals beat Stag Industrial on 11 of the 15 factors compared.

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.