Iron Mountain (NYSE:IRM – Get Rating) and Braemar Hotels & Resorts (NYSE:BHR – Get Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Dividends
Iron Mountain pays an annual dividend of $2.47 per share and has a dividend yield of 4.6%. Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 5.5%. Iron Mountain pays out 130.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Braemar Hotels & Resorts pays out -166.7% of its earnings in the form of a dividend. Braemar Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent recommendations for Iron Mountain and Braemar Hotels & Resorts, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Iron Mountain | 0 | 1 | 3 | 0 | 2.75 |
Braemar Hotels & Resorts | 0 | 0 | 3 | 0 | 3.00 |
Insider & Institutional Ownership
77.1% of Iron Mountain shares are owned by institutional investors. Comparatively, 75.2% of Braemar Hotels & Resorts shares are owned by institutional investors. 2.2% of Iron Mountain shares are owned by insiders. Comparatively, 1.7% of Braemar Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Iron Mountain and Braemar Hotels & Resorts’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Iron Mountain | 10.91% | 79.49% | 3.25% |
Braemar Hotels & Resorts | 2.65% | 4.27% | 0.81% |
Risk and Volatility
Iron Mountain has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Braemar Hotels & Resorts has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500.
Valuation and Earnings
This table compares Iron Mountain and Braemar Hotels & Resorts’ revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Iron Mountain | $5.10 billion | 3.10 | $556.98 million | $1.90 | 28.56 |
Braemar Hotels & Resorts | $669.59 million | 0.36 | $17.76 million | ($0.12) | -30.42 |
Iron Mountain has higher revenue and earnings than Braemar Hotels & Resorts. Braemar Hotels & Resorts 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
Iron Mountain beats Braemar Hotels & Resorts on 10 of the 15 factors compared between the two stocks.
About Iron Mountain
Iron Mountain, Inc. engages in the provision of storage and information management solutions. It operates through the following business segments: North American Records & Information Management Business, North American Data Management Business, Western European Business, Other International Business, Global Data Center Business and Corporate & Other Business. The North American Records & Information Management Business segment offers record management, destruction, and fulfillment services throughout the U.S. and Canada. The North American Data Management Business segment handles data protection and recovery, server and computer backup services, and safeguarding of electronic and physical media in the U.S. and Canada. The Western European Business segment offers records management, data protection and recovery services, and document management solutions throughout the United Kingdom, Ireland, Austria, Belgium, France, Germany, Netherlands, Spain, and Switzerland. The Other International Business segment offers storage and information management services throughout the remaining European countries, Latin America, the Middle East and Africa. The Global Data Center Business segment p
About Braemar Hotels & Resorts
Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).
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