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Where Crown Castle Stands among Peers

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Updated

Peer comparison

In 4Q17, Crown Castle (CCI) had FFO[1.funds from operations] per share of $1.25, and in 2018, it’s expected to see FFO per share of $5.23 due to its acquisition of Lightower. The company is expected to grow 7.8% in 2018, 11.4% in 2019, and at a five-year rate of 15.5%.

Trading slightly lower rate than the industry average, Crown Castle has a price-to-FFO multiple of 20.7x. In comparison, American Tower (AMT), CenturyLink (CTL), and SBA Communications (SBAC) have multiples of 21.0x, 2.3x, and 25.9x. As Crown Castle’s recent acquisition and strategic partnerships could help it gain a presence in the 5G (fifth generation) spectrum and small-cell network space, it has revised its guidance upwards.

Dividend yield comparison

Whereas Crown Castle’s dividend yield is 3.8%, American Tower’s is lower, at 1.9%, and CenturyLink’s is higher, at 12.0%. Crown Castle’s yield is lower than the industry median of 5.5% and the industry average of 6.2%.

Earnings per share

CCI has TTM (trailing-12-month) EPS (earning per share) and a TTM PE (price-to-earnings) ratio of $1.02 and 108.5x, respectively. Peers EPS and TTM PE ratios are as follows:

  • American Tower: $2.63, 54.9x
  • SBA Communications (SBAC): $0.84, 201.8x
  • CenturyLink (CTL): $0.58, 31.1x

NAV (net asset value) is used to assess REITs’ valuation. Together, American Tower and Crown Castle make up 14% of the PowerShares Active US Real Estate ETF (PSR), which currently has a NAV of $78.65.

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