Comparing Lamar Advertising (NASDAQ:LAMR) and Millrose Properties (NYSE:MRP)

Millrose Properties (NYSE:MRP) and Lamar Advertising (NASDAQ:LAMR) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

This table compares Millrose Properties and Lamar Advertising’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Millrose Properties	62.60%	8.13%	5.07%
Lamar Advertising	23.90%	54.94%	8.04%

Dividends

Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.1%. Lamar Advertising pays an annual dividend of $6.40 per share and has a dividend yield of 4.2%. Millrose Properties pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lamar Advertising pays out 116.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lamar Advertising has increased its dividend for 5 consecutive years. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

93.8% of Lamar Advertising shares are held by institutional investors. 0.2% of Millrose Properties shares are held by insiders. Comparatively, 15.2% of Lamar Advertising shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Millrose Properties has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Lamar Advertising has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Millrose Properties and Lamar Advertising, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millrose Properties	0	0	3	1	3.25
Lamar Advertising	0	3	2	0	2.40

Millrose Properties currently has a consensus target price of $37.67, indicating a potential upside of 23.44%. Lamar Advertising has a consensus target price of $160.17, indicating a potential upside of 6.36%. Given Millrose Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe Millrose Properties is more favorable than Lamar Advertising.

Valuation and Earnings

This table compares Millrose Properties and Lamar Advertising”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millrose Properties	$760.54 million	6.19	$379.86 million	$2.87	10.63
Lamar Advertising	$2.27 billion	6.75	$587.15 million	$5.48	27.48

Lamar Advertising has higher revenue and earnings than Millrose Properties. Millrose Properties is trading at a lower price-to-earnings ratio than Lamar Advertising, indicating that it is currently the more affordable of the two stocks.

Summary

Lamar Advertising beats Millrose Properties on 11 of the 18 factors compared between the two stocks.

About Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.

About Lamar Advertising

Lamar Advertising Company operates as an outdoor advertising company in the United States and Canada. The company owns and operates billboards, logo signs, and transit advertising displays, as well as rents space for advertising on billboards, buses, shelters, benches, logo plates, and in airport terminals. Lamar Advertising Company was founded in 1902 and is headquartered in Baton Rouge, Louisiana.