Four Corners Property Trust (NYSE:FCPT) vs. Stag Industrial (NYSE:STAG) Financial Analysis
by Kim Johansen · The Markets DailyStag Industrial (NYSE:STAG – Get Free Report) and Four Corners Property Trust (NYSE:FCPT – Get Free Report) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Volatility and Risk
Stag Industrial has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
Profitability
This table compares Stag Industrial and Four Corners Property Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stag Industrial | 28.25% | 6.80% | 3.47% |
| Four Corners Property Trust | 38.74% | 7.38% | 4.06% |
Dividends
Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 3.9%. Four Corners Property Trust pays an annual dividend of $1.47 per share and has a dividend yield of 5.8%. Stag Industrial pays out 120.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust pays out 131.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial has increased its dividend for 7 consecutive years and Four Corners Property Trust has increased its dividend for 5 consecutive years.
Analyst Ratings
This is a breakdown of current recommendations for Stag Industrial and Four Corners Property Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stag Industrial | 1 | 6 | 3 | 0 | 2.20 |
| Four Corners Property Trust | 0 | 5 | 4 | 0 | 2.44 |
Stag Industrial presently has a consensus target price of $40.40, indicating a potential upside of 2.62%. Four Corners Property Trust has a consensus target price of $28.00, indicating a potential upside of 11.25%. Given Four Corners Property Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Four Corners Property Trust is more favorable than Stag Industrial.
Earnings and Valuation
This table compares Stag Industrial and Four Corners Property Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stag Industrial | $845.18 million | 8.91 | $273.52 million | $1.29 | 30.52 |
| Four Corners Property Trust | $294.13 million | 9.39 | $112.36 million | $1.12 | 22.47 |
Stag Industrial has higher revenue and earnings than Four Corners Property Trust. Four Corners Property Trust is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
88.7% of Stag Industrial shares are owned by institutional investors. Comparatively, 98.7% of Four Corners Property Trust shares are owned by institutional investors. 1.1% of Stag Industrial shares are owned by company insiders. Comparatively, 1.2% of Four Corners Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Four Corners Property Trust beats Stag Industrial on 10 of the 17 factors compared between the two stocks.
About Stag Industrial
STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.
About Four Corners Property Trust
Four Corners Property Trust, Inc. engages in the owning, acquisition, and leasing of properties for use in the restaurant and food-service related industries. It operates through the Real Estate Operations and Restaurant Operations segments. The Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment includes the Kerrow Restaurant operating business. The company was founded on July 2, 2015 and is headquartered in Mill Valley, CA.