Critical Survey: Iron Mountain (IRM) and Its Competitors

Iron Mountain (NYSE:IRM – Get Free Report) is one of 35 public companies in the “Specialized REITs” industry, but how does it contrast to its peers? We will compare Iron Mountain to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Iron Mountain and its peers, as provided by MarketBeat.com.

Iron Mountain currently has a consensus target price of $135.17, indicating a potential upside of 11.43%. As a group, “Specialized REITs” companies have a potential upside of 13.46%. Given Iron Mountain’s peers higher possible upside, analysts clearly believe Iron Mountain has less favorable growth aspects than its peers.

Insider and Institutional Ownership

80.1% of Iron Mountain shares are held by institutional investors. Comparatively, 78.0% of shares of all “Specialized REITs” companies are held by institutional investors. 1.7% of Iron Mountain shares are held by company insiders. Comparatively, 7.6% of shares of all “Specialized REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Iron Mountain has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Iron Mountain’s peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Dividends

Iron Mountain pays an annual dividend of $3.46 per share and has a dividend yield of 2.9%. Iron Mountain pays out 247.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 3.4% and pay out 120.7% of their earnings in the form of a dividend. Iron Mountain has increased its dividend for 3 consecutive years. Iron Mountain lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Iron Mountain and its peers’ net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Iron Mountain and its peers gross revenue, earnings per share (EPS) and valuation.

Iron Mountain has higher revenue, but lower earnings than its peers. Iron Mountain is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Iron Mountain beats its peers on 8 of the 15 factors compared.

Iron Mountain Company Profile

(Get Free Report)

Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Founded in 1951 and trusted by more than 240,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers’ work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.