Equinix (NASDAQ:EQIX – Get Free Report) and Urban Edge Properties (NYSE:UE – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Profitability
This table compares Equinix and Urban Edge Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Equinix | 11.11% | 7.22% | 2.73% |
| Urban Edge Properties | 22.86% | 7.74% | 3.21% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Equinix and Urban Edge Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equinix | 0 | 5 | 18 | 4 | 2.96 |
| Urban Edge Properties | 0 | 3 | 2 | 0 | 2.40 |
Risk & Volatility
Equinix has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Institutional and Insider Ownership
94.9% of Equinix shares are owned by institutional investors. Comparatively, 94.9% of Urban Edge Properties shares are owned by institutional investors. 0.3% of Equinix shares are owned by company insiders. Comparatively, 2.4% of Urban Edge Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Equinix pays an annual dividend of $18.76 per share and has a dividend yield of 2.3%. Urban Edge Properties pays an annual dividend of $0.76 per share and has a dividend yield of 4.0%. Equinix pays out 183.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties pays out 90.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix has increased its dividend for 10 consecutive years and Urban Edge Properties has increased its dividend for 2 consecutive years. Urban Edge Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Equinix and Urban Edge Properties”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Equinix | $8.75 billion | 8.96 | $815.00 million | $10.21 | 78.41 |
| Urban Edge Properties | $461.04 million | 5.23 | $72.56 million | $0.84 | 22.82 |
Equinix has higher revenue and earnings than Urban Edge Properties. Urban Edge Properties is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.
Summary
Equinix beats Urban Edge Properties on 10 of the 18 factors compared between the two stocks.
About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
About Urban Edge Properties
Urban Edge Properties is a NYSE listed real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 76 properties totaling 17.1 million square feet of gross leasable area.
Receive News & Ratings for Equinix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Equinix and related companies with MarketBeat.com's FREE daily email newsletter.
