Financial Comparison: Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) and NNN REIT (NYSE:NNN)

Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) and NNN REIT (NYSE:NNN) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider & Institutional Ownership

96.1% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by institutional investors. Comparatively, 90.0% of NNN REIT shares are held by institutional investors. 2.3% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by insiders. Comparatively, 0.8% of NNN REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.66 per share and has a dividend yield of 6.8%. NNN REIT pays an annual dividend of $2.26 per share and has a dividend yield of 5.7%. Hannon Armstrong Sustainable Infrastructure Capital pays out 123.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT pays out 104.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustainable Infrastructure Capital has raised its dividend for 6 consecutive years and NNN REIT has raised its dividend for 34 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hannon Armstrong Sustainable Infrastructure Capital and NNN REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hannon Armstrong Sustainable Infrastructure Capital	0	2	5	0	2.71
NNN REIT	1	2	2	0	2.20

Hannon Armstrong Sustainable Infrastructure Capital currently has a consensus target price of $31.89, suggesting a potential upside of 30.69%. NNN REIT has a consensus target price of $44.50, suggesting a potential upside of 12.18%. Given Hannon Armstrong Sustainable Infrastructure Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than NNN REIT.

Risk & Volatility

Hannon Armstrong Sustainable Infrastructure Capital has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, NNN REIT has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Earnings and Valuation

This table compares Hannon Armstrong Sustainable Infrastructure Capital and NNN REIT’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hannon Armstrong Sustainable Infrastructure Capital	$319.87 million	8.68	$148.84 million	$1.34	18.21
NNN REIT	$828.11 million	8.76	$392.34 million	$2.16	18.37

NNN REIT has higher revenue and earnings than Hannon Armstrong Sustainable Infrastructure Capital. Hannon Armstrong Sustainable Infrastructure Capital is trading at a lower price-to-earnings ratio than NNN REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hannon Armstrong Sustainable Infrastructure Capital and NNN REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hannon Armstrong Sustainable Infrastructure Capital	46.53%	10.93%	3.76%
NNN REIT	47.38%	9.45%	4.64%

Summary

NNN REIT beats Hannon Armstrong Sustainable Infrastructure Capital on 9 of the 17 factors compared between the two stocks.

About Hannon Armstrong Sustainable Infrastructure Capital

Hannon Armstrong Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment in energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company's portfolio includes equity investments, commercial and government receivables, real estate, and debt securities. It invests in climate solution, including Behind-the-Meter that distributes energy projects which reduce energy usage or cost through heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems; Grid-Connected, a renewable energy projects that deploy cleaner energy sources, such as solar, solar-plus-storage, and wind to generate power production; and Fuels, Transport, and Nature, a range of real assets spanning high-emitting economic sectors other than the power grid such as transportation and fuels comprising renewable natural gas plants, transportation fleet enhancements, ecological restoration, and other projects. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.