Financial Comparison: Iron Mountain (NYSE:IRM) & Millrose Properties (NYSE:MRP)

Iron Mountain (NYSE:IRM) and Millrose Properties (NYSE:MRP) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

80.1% of Iron Mountain shares are held by institutional investors. 1.7% of Iron Mountain shares are held by company insiders. Comparatively, 0.2% of Millrose Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Iron Mountain pays an annual dividend of $3.46 per share and has a dividend yield of 3.1%. Millrose Properties pays an annual dividend of $3.16 per share and has a dividend yield of 11.9%. Iron Mountain pays out 226.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties 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. Iron Mountain has raised its dividend for 3 consecutive years. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Iron Mountain has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Iron Mountain and Millrose Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iron Mountain	0	2	8	0	2.80
Millrose Properties	0	3	0	1	2.50

Iron Mountain presently has a consensus target price of $141.33, suggesting a potential upside of 27.42%. Millrose Properties has a consensus target price of $35.00, suggesting a potential upside of 31.50%. Given Millrose Properties’ higher possible upside, analysts clearly believe Millrose Properties is more favorable than Iron Mountain.

Profitability

This table compares Iron Mountain and Millrose Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iron Mountain	5.54%	-85.44%	3.30%
Millrose Properties	63.24%	8.56%	5.13%

Earnings & Valuation

This table compares Iron Mountain and Millrose Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iron Mountain	$6.90 billion	4.78	$144.59 million	$1.53	72.49
Millrose Properties	$600.46 million	6.84	$379.86 million	$3.02	8.81

Millrose Properties has lower revenue, but higher earnings than Iron Mountain. Millrose Properties is trading at a lower price-to-earnings ratio than Iron Mountain, indicating that it is currently the more affordable of the two stocks.

Summary

Millrose Properties beats Iron Mountain on 10 of the 18 factors compared between the two stocks.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Founded in 1951 and trusted by more than 240,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers’ work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.

About Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.