Fermi Inc. (FRMI) vs Lamar Advertising Company (LAMR)

Fermi Inc. and Lamar Advertising Company are both Reit Specialty companies. Lamar Advertising Company is the larger, with a market value of $14.6B against $3.0B — 4.9× the size. Fermi Inc. has negative trailing earnings, so its P/E is not meaningful; Lamar Advertising Company trades at 26.3×. Lamar Advertising Company has the higher net margin (23.9% vs 0.00%) and the higher return on invested capital (10.4% vs −24.3%). Across the 12 metrics below, Lamar Advertising Company leads on 9 and Fermi Inc. on 3.

Valuation

Metric FRMI LAMR Reit Specialty median
P/E n/m 26.27 26.27
P/S n/m 6.28 5.86
P/B 2.79 14.68 2.19
Price to free cash flow n/m 19.77 14.62
EV/EBITDA n/m 16.69 16.22
EV/Sales n/m 7.77 8.93
Earnings yield (32.29%) 3.81% 3.43%
Free cash flow yield (43.05%) 5.06% 5.37%

Profitability

Metric FRMI LAMR Reit Specialty median
Gross margin — 67.43% 67.43%
Operating margin 0.00% 31.78% 21.38%
Net margin 0.00% 23.89% 16.14%
Free cash flow margin 0.00% 31.77% 31.07%
Return on equity (134.87%) 58.42% 4.76%
Return on assets (74.99%) 8.13% 3.29%
Return on invested capital (24.28%) 10.37% 4.19%

Growth

Metric FRMI LAMR Reit Specialty median
Revenue growth (TTM) — 4.39% 5.36%
EPS growth (last fiscal year) — 63.92% —
Revenue growth, 5-year CAGR — 7.63% 6.70%
Net income growth, 5-year CAGR — 19.28% 0.00%

Health

Metric FRMI LAMR Reit Specialty median
Debt to equity 0.00 3.54 0.62
Current ratio 0.61 0.63 0.70
Net debt to EBITDA 2.30 3.04 4.47

Dividend

Metric FRMI LAMR Reit Specialty median
Dividend yield — 4.73% 3.88%
Payout ratio — 1.20 1.14

Size

Metric FRMI LAMR Reit Specialty median
Market cap 2.98b 14.59b 8.48b

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