Jernigan Capital (NYSE: JCAP) and Communications Sales & Leasing,Inc. (NASDAQ:UNIT) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Volatility & Risk
Jernigan Capital has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Communications Sales & Leasing,Inc. has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.
Earnings & Valuation
This table compares Jernigan Capital and Communications Sales & Leasing,Inc.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Jernigan Capital||$7.80 million||37.55||$28.62 million||$2.01||10.23|
|Communications Sales & Leasing,Inc.||$831.65 million||4.09||$681.10 million||($0.32)||-60.53|
Communications Sales & Leasing,Inc. has higher revenue and earnings than Jernigan Capital. Communications Sales & Leasing,Inc. is trading at a lower price-to-earnings ratio than Jernigan Capital, indicating that it is currently the more affordable of the two stocks.
Jernigan Capital pays an annual dividend of $1.40 per share and has a dividend yield of 6.8%. Communications Sales & Leasing,Inc. pays an annual dividend of $2.40 per share and has a dividend yield of 12.4%. Jernigan Capital pays out 69.7% of its earnings in the form of a dividend. Communications Sales & Leasing,Inc. pays out -750.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Communications Sales & Leasing,Inc. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
40.9% of Jernigan Capital shares are held by institutional investors. Comparatively, 57.0% of Communications Sales & Leasing,Inc. shares are held by institutional investors. 3.2% of Jernigan Capital shares are held by insiders. Comparatively, 0.4% of Communications Sales & Leasing,Inc. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations for Jernigan Capital and Communications Sales & Leasing,Inc., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Communications Sales & Leasing,Inc.||0||0||8||1||3.11|
Jernigan Capital currently has a consensus price target of $25.33, suggesting a potential upside of 23.16%. Communications Sales & Leasing,Inc. has a consensus price target of $31.17, suggesting a potential upside of 60.90%. Given Communications Sales & Leasing,Inc.’s stronger consensus rating and higher possible upside, analysts clearly believe Communications Sales & Leasing,Inc. is more favorable than Jernigan Capital.
This table compares Jernigan Capital and Communications Sales & Leasing,Inc.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Communications Sales & Leasing,Inc.||-5.41%||N/A||-1.29%|
Communications Sales & Leasing,Inc. beats Jernigan Capital on 10 of the 17 factors compared between the two stocks.
About Jernigan Capital
Jernigan Capital, Inc. is a commercial real estate finance company. The Company provides capital to private developers, owners and operators of self-storage facilities. It intends to generate long-term returns on development property investments through a fixed rate of interest on its invested capital together with an interest in the positive cash flows of the self-storage development from operations, sales and/or refinancings. It generates cash flows from construction loans and operating property loans in the form of a fixed interest rate and origination fees. It originates various loans, such as bridge loans and credit lines. It has development property investments in Orlando, Atlanta, Tampa, Chicago and Miami. Its operating property loans are located in New Orleans, Newark, Nashville, Sacramento and Chicago. The Company conducts its investment activities through Jernigan Capital Operating Company, LLC. The Company is externally managed and advised by JCap Advisors, LLC.
About Communications Sales & Leasing,Inc.
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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