Analyzing Mackenzie Realty Capital (NASDAQ:MKZR) and Uniti Group (NASDAQ:UNIT)

Uniti Group (NASDAQ:UNIT) and Mackenzie Realty Capital (NASDAQ:MKZR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Insider and Institutional Ownership

87.5% of Uniti Group shares are owned by institutional investors. 1.9% of Uniti Group shares are owned by insiders. Comparatively, 6.3% of Mackenzie Realty Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Uniti Group and Mackenzie Realty Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uniti Group	$2.23 billion	1.19	$1.30 billion	$3.35	3.27
Mackenzie Realty Capital	$22.06 million	0.16	-$25.92 million	($6.15)	-0.26

Uniti Group has higher revenue and earnings than Mackenzie Realty Capital. Mackenzie Realty Capital is trading at a lower price-to-earnings ratio than Uniti Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Uniti Group and Mackenzie Realty Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Uniti Group	39.61%	N/A	-3.44%
Mackenzie Realty Capital	-90.30%	-18.99%	-7.07%

Risk & Volatility

Uniti Group has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Mackenzie Realty Capital has a beta of -0.9, meaning that its stock price is 190% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Uniti Group and Mackenzie Realty Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uniti Group	0	7	1	1	2.33
Mackenzie Realty Capital	1	0	0	0	1.00

Uniti Group presently has a consensus target price of $11.14, indicating a potential upside of 1.63%. Given Uniti Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Uniti Group is more favorable than Mackenzie Realty Capital.

Summary

Uniti Group beats Mackenzie Realty Capital on 14 of the 15 factors compared between the two stocks.

About Uniti Group

Uniti Group, Inc. is a real estate investment trust company, which engages in the acquisition, construction, and leasing of properties. It operates through the following business segments: Uniti Leasing, Uniti Fiber, and Corporate. The Uniti Leasing segment involves mission-critical communications assets on exclusive or shared-tenant basis, and dark fiber network. The Uniti Fiber segment includes the operation of infrastructure solutions, cell site backhauls, and dark fiber. The Corporate segment consists of office and shared service functions. The company was founded in February 2014 and is headquartered in Little Rock, AR.

About Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.