Head to Head Analysis: PotlatchDeltic (NASDAQ:PCH) & Uniti Group (NASDAQ:UNIT)

PotlatchDeltic (NASDAQ:PCH) and Uniti Group (NASDAQ:UNIT) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Dividends

PotlatchDeltic pays an annual dividend of $1.80 per share and has a dividend yield of 4.6%. Uniti Group pays an annual dividend of $0.45 per share and has a dividend yield of 8.3%. PotlatchDeltic pays out 857.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Uniti Group pays out 109.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Uniti Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

86.1% of PotlatchDeltic shares are held by institutional investors. Comparatively, 87.5% of Uniti Group shares are held by institutional investors. 2.0% of PotlatchDeltic shares are held by insiders. Comparatively, 1.4% of Uniti Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for PotlatchDeltic and Uniti Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PotlatchDeltic	0	1	4	0	2.80
Uniti Group	0	1	2	0	2.67

PotlatchDeltic presently has a consensus target price of $48.20, suggesting a potential upside of 22.18%. Uniti Group has a consensus target price of $7.33, suggesting a potential upside of 35.55%. Given Uniti Group’s higher probable upside, analysts clearly believe Uniti Group is more favorable than PotlatchDeltic.

Earnings & Valuation

This table compares PotlatchDeltic and Uniti Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PotlatchDeltic	$1.06 billion	2.94	$62.10 million	$0.21	187.86
Uniti Group	$1.16 billion	1.14	-$81.71 million	$0.41	13.20

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

Risk and Volatility

PotlatchDeltic has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Uniti Group has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PotlatchDeltic	1.56%	0.78%	0.49%
Uniti Group	8.82%	-4.12%	2.02%

Summary

Uniti Group beats PotlatchDeltic on 9 of the 16 factors compared between the two stocks.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance.

About Uniti Group

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of fiber and other wireless solutions for the communications industry. As of December 31, 2023, Uniti owns approximately 140,000 fiber route miles, 8.5 million fiber strand miles, and other communications real estate throughout the United States.