Plymouth Industrial REIT (NYSE:PLYM) vs. Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) Critical Comparison

Plymouth Industrial REIT (NYSE:PLYM) and Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Valuation & Earnings

This table compares Plymouth Industrial REIT and Hannon Armstrong Sustainable Infrastructure Capital’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plymouth Industrial REIT	$199.85 million	4.66	$13.66 million	$0.19	108.00
Hannon Armstrong Sustainable Infrastructure Capital	$319.87 million	8.58	$148.84 million	$1.34	17.99

Hannon Armstrong Sustainable Infrastructure Capital has higher revenue and earnings than Plymouth Industrial REIT. Hannon Armstrong Sustainable Infrastructure Capital is trading at a lower price-to-earnings ratio than Plymouth Industrial REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Plymouth Industrial REIT and Hannon Armstrong Sustainable Infrastructure Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Plymouth Industrial REIT	6.75%	2.84%	0.91%
Hannon Armstrong Sustainable Infrastructure Capital	46.53%	10.93%	3.76%

Institutional and Insider Ownership

92.7% of Plymouth Industrial REIT shares are held by institutional investors. Comparatively, 96.1% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by institutional investors. 1.3% of Plymouth Industrial REIT shares are held by insiders. Comparatively, 2.3% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by 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

Plymouth Industrial REIT pays an annual dividend of $0.96 per share and has a dividend yield of 4.7%. Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.66 per share and has a dividend yield of 6.9%. Plymouth Industrial REIT pays out 505.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustainable Infrastructure Capital pays out 123.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Plymouth Industrial REIT has raised its dividend for 3 consecutive years and Hannon Armstrong Sustainable Infrastructure Capital has raised its dividend for 6 consecutive years. Hannon Armstrong Sustainable Infrastructure Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Plymouth Industrial REIT and Hannon Armstrong Sustainable Infrastructure Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plymouth Industrial REIT	1	1	4	0	2.50
Hannon Armstrong Sustainable Infrastructure Capital	0	2	5	0	2.71

Plymouth Industrial REIT presently has a consensus price target of $25.00, suggesting a potential upside of 21.83%. Hannon Armstrong Sustainable Infrastructure Capital has a consensus price target of $31.89, suggesting a potential upside of 32.26%. Given Hannon Armstrong Sustainable Infrastructure Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than Plymouth Industrial REIT.

Risk and Volatility

Plymouth Industrial REIT has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Hannon Armstrong Sustainable Infrastructure Capital has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500.

Summary

Hannon Armstrong Sustainable Infrastructure Capital beats Plymouth Industrial REIT on 16 of the 17 factors compared between the two stocks.

About Plymouth Industrial REIT

Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.

About Hannon Armstrong Sustainable Infrastructure Capital

Hannon Armstrong Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment in energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company's portfolio includes equity investments, commercial and government receivables, real estate, and debt securities. It invests in climate solution, including Behind-the-Meter that distributes energy projects which reduce energy usage or cost through heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems; Grid-Connected, a renewable energy projects that deploy cleaner energy sources, such as solar, solar-plus-storage, and wind to generate power production; and Fuels, Transport, and Nature, a range of real assets spanning high-emitting economic sectors other than the power grid such as transportation and fuels comprising renewable natural gas plants, transportation fleet enhancements, ecological restoration, and other projects. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.