Financial Survey: Millrose Properties (NYSE:MRP) vs. American Tower (NYSE:AMT)

Millrose Properties (NYSE:MRP) and American Tower (NYSE:AMT) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Dividends

Millrose Properties pays an annual dividend of $3.16 per share and has a dividend yield of 12.4%. American Tower pays an annual dividend of $7.16 per share and has a dividend yield of 3.8%. 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. American Tower pays out 101.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower has raised its dividend for 12 consecutive years.

Earnings and Valuation

This table compares Millrose Properties and American Tower”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millrose Properties	$600.46 million	6.57	$379.86 million	$3.02	8.47
American Tower	$10.64 billion	8.22	$2.53 billion	$7.09	26.49

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Millrose Properties and American Tower, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millrose Properties	0	3	0	1	2.50
American Tower	0	2	16	1	2.95

Millrose Properties currently has a consensus target price of $35.00, indicating a potential upside of 36.83%. American Tower has a consensus target price of $216.44, indicating a potential upside of 15.23%. Given Millrose Properties’ higher possible upside, research analysts plainly believe Millrose Properties is more favorable than American Tower.

Insider and Institutional Ownership

92.7% of American Tower shares are held by institutional investors. 0.2% of Millrose Properties shares are held by company insiders. Comparatively, 0.1% of American Tower shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Millrose Properties has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, American Tower has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares Millrose Properties and American Tower’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Millrose Properties	63.24%	8.56%	5.13%
American Tower	30.10%	32.71%	5.24%

Summary

American Tower beats Millrose Properties on 13 of the 17 factors compared between the two stocks.

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.

About American Tower

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of U.S. data center facilities.