Comparing Lamar Advertising (LAMR) & Its Rivals

Lamar Advertising (NASDAQ: LAMR) is one of 233 public companies in the “Real estate investment trusts” industry, but how does it weigh in compared to its rivals? We will compare Lamar Advertising to similar companies based on the strength of its valuation, dividends, risk, profitability, earnings, analyst recommendations and institutional ownership.

Dividends

Lamar Advertising pays an annual dividend of $3.64 per share and has a dividend yield of 5.3%. Lamar Advertising pays out 72.1% of its earnings in the form of a dividend. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.6% and pay out 71.6% of their earnings in the form of a dividend. Lamar Advertising has increased its dividend for 2 consecutive years.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lamar Advertising 1 3 1 0 2.00
Lamar Advertising Competitors 1655 8143 8750 244 2.40

Lamar Advertising currently has a consensus price target of $73.25, indicating a potential upside of 5.82%. As a group, “Real estate investment trusts” companies have a potential upside of 8.69%. Given Lamar Advertising’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Lamar Advertising has less favorable growth aspects than its rivals.

Profitability

This table compares Lamar Advertising and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lamar Advertising 18.69% 27.02% 7.15%
Lamar Advertising Competitors 23.39% 6.62% 2.62%

Earnings and Valuation

This table compares Lamar Advertising and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lamar Advertising $1.54 billion $317.67 million 13.71
Lamar Advertising Competitors $797.45 million $175.01 million 14.79

Lamar Advertising has higher revenue and earnings than its rivals. Lamar Advertising 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.

Volatility & Risk

Lamar Advertising has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Lamar Advertising’s rivals have a beta of 0.56, suggesting that their average share price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

97.0% of Lamar Advertising shares are owned by institutional investors. Comparatively, 73.3% of shares of all “Real estate investment trusts” companies are owned by institutional investors. 15.6% of Lamar Advertising shares are owned by insiders. Comparatively, 7.0% of shares of all “Real estate investment trusts” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Lamar Advertising beats its rivals on 8 of the 15 factors compared.

About Lamar Advertising

Founded in 1902, Lamar Advertising (Nasdaq:LAMR) is one of the largest outdoor advertising companies in North America, with more than 348,000 displays across the United States, Canada and Puerto Rico. Lamar offers advertisers a variety of billboard, interstate logo and transit advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 2,800 displays.

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