Lamar Advertising (NASDAQ:LAMR – Get Free Report) is one of 35 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its competitors? We will compare Lamar Advertising to related businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.
Risk & Volatility
Lamar Advertising has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Lamar Advertising’s competitors have a beta of 0.92, suggesting that their average share price is 8% less volatile than the S&P 500.
Earnings & Valuation
This table compares Lamar Advertising and its competitors revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Lamar Advertising | $2.27 billion | $587.15 million | 28.77 |
| Lamar Advertising Competitors | $2.59 billion | $596.00 million | 32.09 |
Lamar Advertising’s competitors have higher revenue and earnings than Lamar Advertising. Lamar Advertising is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Lamar Advertising and its competitors, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lamar Advertising | 0 | 3 | 2 | 0 | 2.40 |
| Lamar Advertising Competitors | 516 | 2769 | 3655 | 191 | 2.49 |
Lamar Advertising currently has a consensus target price of $161.00, indicating a potential upside of 2.12%. As a group, “Specialized REITs” companies have a potential upside of 16.26%. Given Lamar Advertising’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Lamar Advertising has less favorable growth aspects than its competitors.
Profitability
This table compares Lamar Advertising and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lamar Advertising | 23.90% | 54.94% | 8.04% |
| Lamar Advertising Competitors | -5.42% | -3.45% | 2.01% |
Insider & Institutional Ownership
93.8% of Lamar Advertising shares are held by institutional investors. Comparatively, 78.0% of shares of all “Specialized REITs” companies are held by institutional investors. 15.2% of Lamar Advertising shares are held by company insiders. Comparatively, 7.5% of shares of all “Specialized REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
Lamar Advertising pays an annual dividend of $6.60 per share and has a dividend yield of 4.2%. Lamar Advertising pays out 120.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 3.4% and pay out 120.7% of their earnings in the form of a dividend. Lamar Advertising has increased its dividend for 5 consecutive years. Lamar Advertising is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Summary
Lamar Advertising beats its competitors on 8 of the 15 factors compared.
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.
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