American Tower vs Equinix
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KIRA’s take AI analyst
I put American Tower and Equinix side by side, using each one’s latest annual report. Here is what stands out:
- American Tower is the larger business, with $10.6B of revenue in fiscal 2025 against $9.2B for Equinix.
- American Tower kept more of each dollar of sales as operating profit (45.5% operating margin, against 20.1%).
- American Tower turned more of its sales into free cash flow (35.5% FCF margin, against −4.3%).
- American Tower earned a higher return on the capital invested in it (9.3%, against 5.6%).
- Investors pay more for each dollar of Equinix’s earnings: a P/E of 62.3x against 25.9x for American Tower.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
American Tower
AMT
6/10
Operating marginNet marginFCF marginReturn on capitalReturn on equityShare count change
Equinix
EQIX
3/10
Revenue growth5-year growthNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | AMT FY25 | EQIX FY25 |
|---|---|---|
| Size | ||
| Market cap | $87.8B | $95.9B |
| Revenue | $10.6B | $9.2B |
| Free cash flow | $3.8B | −$400M |
| Net income | $2.6B | $1.4B |
| Growth | ||
| Revenue growth | 5.1% | 5.4% |
| 5-year growth | 5.8% | 9.0% |
| Share count change | 0.1% | 2.4% |
| Profitability | ||
| Gross margin | — | 51.1% |
| Operating margin | 45.5% | 20.1% |
| Net margin | 24.7% | 14.7% |
| FCF margin | 35.5% | −4.3% |
| Return on capital | 9.3% | 5.6% |
| Return on equity | 74.7% | 9.8% |
| Balance sheet | ||
| Net debt | $35.7B | $17.3B |
| Net debt / EBITDA | 5.2x | 4.5x |
| Dividends and buybacks | $3.5B | $1.9B |
| Valuation & quality | ||
| P/E | 25.9x | 62.3x |
| Piotroski F-score | 5 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.