American Tower Corporation (REIT) (NYSE: AMT) and CyrusOne (NASDAQ:CONE) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitabiliy, valuation and risk.

Risk & Volatility

American Tower Corporation (REIT) has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, CyrusOne has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Institutional and Insider Ownership

93.3% of American Tower Corporation (REIT) shares are held by institutional investors. Comparatively, 99.2% of CyrusOne shares are held by institutional investors. 0.9% of American Tower Corporation (REIT) shares are held by insiders. Comparatively, 1.6% of CyrusOne 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.

Valuation & Earnings

This table compares American Tower Corporation (REIT) and CyrusOne’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Tower Corporation (REIT) $6.33 billion 9.29 $3.74 billion $2.49 55.25
CyrusOne $597.40 million N/A $296.10 million ($0.31) -188.99

American Tower Corporation (REIT) has higher revenue and earnings than CyrusOne. CyrusOne is trading at a lower price-to-earnings ratio than American Tower Corporation (REIT), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for American Tower Corporation (REIT) and CyrusOne, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Tower Corporation (REIT) 0 0 11 0 3.00
CyrusOne 1 1 11 0 2.77

American Tower Corporation (REIT) currently has a consensus price target of $141.82, indicating a potential upside of 3.09%. CyrusOne has a consensus price target of $59.08, indicating a potential upside of 0.83%. Given American Tower Corporation (REIT)’s stronger consensus rating and higher possible upside, analysts clearly believe American Tower Corporation (REIT) is more favorable than CyrusOne.

Profitability

This table compares American Tower Corporation (REIT) and CyrusOne’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Tower Corporation (REIT) 18.58% 16.70% 3.74%
CyrusOne -4.35% 1.30% 0.52%

Dividends

American Tower Corporation (REIT) pays an annual dividend of $2.56 per share and has a dividend yield of 1.9%. CyrusOne pays an annual dividend of $1.68 per share and has a dividend yield of 2.9%. American Tower Corporation (REIT) pays out 102.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CyrusOne pays out -541.9% of its earnings in the form of a dividend. CyrusOne has raised its dividend for 5 consecutive years. CyrusOne is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

American Tower Corporation (REIT) beats CyrusOne on 9 of the 15 factors compared between the two stocks.

American Tower Corporation (REIT) Company Profile

American Tower Corporation (ATC) is a holding company. The Company operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. ATC’s segments include U.S. property, Asia property, EMEA property, Latin America property, Services and Other. Its primary business is property operations, which include the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities, and tenants in various other industries. Its U.S. property segment includes operations in the United States. Its Asia property segment includes operations in India. The EMEA property segment includes operations in Germany, Ghana, Nigeria, South Africa and Uganda. The Latin America property segment includes operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. Its services segment offers tower-related services in the United States.

CyrusOne Company Profile

CyrusOne Inc. is a real estate investment trust. The Company is an owner, operator and developer of enterprise-class, carrier-neutral, multi-tenant data center properties. The Company’s data centers are generally purpose-built facilities with redundant power and cooling. The CyrusOne National IX Platform (the National IX Platform) delivers interconnection across states and between metro-enabled sites within its footprint and beyond. The Company has data centers in the United States, London and Singapore. As of December 31, 2016, the Company provided mission-critical data center facilities for 932 customers in 35 data centers and two recovery centers in 11 distinct markets (nine cities in the United States, London and Singapore) with approximately 3,904,000 net rentable square feet (NRSF). The Company provides round the clock security guard monitoring with customizable security features. As of December 31, 2016, the Company had approximately 1,657,000 NRSF under development.

Receive News & Ratings for American Tower Corporation (REIT) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Tower Corporation (REIT) and related companies with MarketBeat.com's FREE daily email newsletter.