Head to Head Analysis: Four Corners Property Trust (FCPT) vs. Retail Properties of America (RPAI)
Four Corners Property Trust (NYSE: FCPT) and Retail Properties of America (NYSE:RPAI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitabiliy and dividends.
Four Corners Property Trust pays an annual dividend of $0.97 per share and has a dividend yield of 3.8%. Retail Properties of America pays an annual dividend of $0.66 per share and has a dividend yield of 5.4%. Four Corners Property Trust pays out 74.6% of its earnings in the form of a dividend. Retail Properties of America pays out 153.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
88.1% of Four Corners Property Trust shares are held by institutional investors. Comparatively, 78.7% of Retail Properties of America shares are held by institutional investors. 0.3% of Four Corners Property Trust shares are held by insiders. Comparatively, 0.4% of Retail Properties of America shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Four Corners Property Trust and Retail Properties of America’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Four Corners Property Trust||$125.67 million||12.21||$97.33 million||$1.30||19.66|
|Retail Properties of America||$574.86 million||5.03||$362.33 million||$0.43||28.47|
Retail Properties of America has higher revenue and earnings than Four Corners Property Trust. Four Corners Property Trust is trading at a lower price-to-earnings ratio than Retail Properties of America, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Four Corners Property Trust has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Retail Properties of America has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
This table compares Four Corners Property Trust and Retail Properties of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Four Corners Property Trust||62.08%||17.13%||8.64%|
|Retail Properties of America||19.08%||5.14%||2.43%|
This is a summary of recent ratings and price targets for Four Corners Property Trust and Retail Properties of America, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Four Corners Property Trust||0||2||0||0||2.00|
|Retail Properties of America||0||3||2||0||2.40|
Four Corners Property Trust currently has a consensus target price of $21.00, suggesting a potential downside of 17.84%. Retail Properties of America has a consensus target price of $16.70, suggesting a potential upside of 36.44%. Given Retail Properties of America’s stronger consensus rating and higher probable upside, analysts clearly believe Retail Properties of America is more favorable than Four Corners Property Trust.
Four Corners Property Trust Company Profile
Four Corners Property Trust, Inc. is a self-administered company and real estate investment trust (REIT), which owns, acquires and leases properties for use in the restaurant and food service related industries. The Company operates through two segments: real estate operations and restaurant operations. Its real estate operations segment consists of rental revenues primarily generated by leasing restaurant properties to tenants through triple-net lease arrangements under which the tenant is primarily responsible for ongoing costs relating to the properties. Its restaurant operations segment is conducted through its taxable REIT subsidiary, Kerrow Holdings, LLC, and consists of its Kerrow Restaurant Operating Business. As of December 31, 2016, it had owned 481 properties, all within the continental United States. Of these properties, 475 were held for investment and leased to tenants under triple-net leases and had an aggregate leasable area of approximately 3.4 million square feet.
Retail Properties of America Company Profile
Retail Properties of America, Inc. is a real estate investment trust (REIT). The Company owns and operates shopping centers located in the United States. As of December 31, 2016, it owned 156 retail operating properties representing 25,832,000 square feet of gross leasable area (GLA). Its retail operating portfolio includes neighborhood and community centers, power centers, and lifestyle centers and multi-tenant retail-focused mixed-use properties, as well as single-user retail properties. As of December 31, 2016, it had identified 10 target markets, including Dallas, Washington, District of Columbia/Baltimore, New York, Atlanta, Seattle, Chicago, Houston, San Antonio, Phoenix and Austin. Its properties include 23rd Street Plaza, Azalea Square I, Boulevard Plaza, Brown’s Lane, Cranberry Square, Denton Crossing, Dorman Center I & II, Edgemont Town Center, Edwards Multiplex, Green’s Corner, Home Depot Plaza, Lake Mary Pointe, Lincoln Park, University Town Center and Winchester Commons.
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