Fermi Inc. (FRMI) vs SBA Communications Corporation (SBAC)

Fermi Inc. and SBA Communications Corporation are both Reit Specialty companies. SBA Communications Corporation is the larger, with a market value of $17.6B against $3.0B — 5.9× the size. Fermi Inc. has negative trailing earnings, so its P/E is not meaningful; SBA Communications Corporation trades at 17.8×. SBA Communications Corporation has the higher net margin (34.5% vs 0.00%) and the higher return on invested capital (11.0% vs −24.3%). Across the 11 metrics below, SBA Communications Corporation leads on 9 and Fermi Inc. on 2.

Valuation

Metric FRMI SBAC Reit Specialty median
P/E n/m 17.85 26.27
P/S n/m 6.14 5.86
P/B 2.79 n/m 2.19
Price to free cash flow n/m 13.09 14.62
EV/EBITDA n/m 17.55 16.22
EV/Sales n/m 10.45 8.93
Earnings yield (32.29%) 5.60% 3.43%
Free cash flow yield (43.05%) 7.64% 5.37%

Profitability

Metric FRMI SBAC Reit Specialty median
Gross margin — 75.18% 67.43%
Operating margin 0.00% 47.65% 21.38%
Net margin 0.00% 34.51% 16.14%
Free cash flow margin 0.00% 46.89% 31.07%
Return on equity (134.87%) (20.71%) 4.76%
Return on assets (74.99%) 8.80% 3.29%
Return on invested capital (24.28%) 11.04% 4.19%

Growth

Metric FRMI SBAC Reit Specialty median
Revenue growth (TTM) — 5.36% 5.36%
EPS growth (last fiscal year) — 41.21% —
Revenue growth, 5-year CAGR — 6.21% 6.70%
Net income growth, 5-year CAGR — 112.87% 0.00%

Health

Metric FRMI SBAC Reit Specialty median
Debt to equity 0.00 (2.75) 0.62
Current ratio 0.61 0.17 0.70
Net debt to EBITDA 2.30 7.52 4.47

Dividend

Metric FRMI SBAC Reit Specialty median
Dividend yield — 1.59% 3.88%
Payout ratio — 0.67 1.14

Size

Metric FRMI SBAC Reit Specialty median
Market cap 2.98b 17.62b 8.48b

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