Four Corners Property Trust (NYSE: FCPT) and Ramco-Gershenson Properties Trust (NYSE:RPT) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Four Corners Property Trust and Ramco-Gershenson Properties Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Four Corners Property Trust 0 2 2 0 2.50
Ramco-Gershenson Properties Trust 1 2 4 0 2.43

Four Corners Property Trust presently has a consensus target price of $26.33, suggesting a potential upside of 5.38%. Ramco-Gershenson Properties Trust has a consensus target price of $16.00, suggesting a potential upside of 21.95%. Given Ramco-Gershenson Properties Trust’s higher probable upside, analysts clearly believe Ramco-Gershenson Properties Trust is more favorable than Four Corners Property Trust.

Risk & Volatility

Four Corners Property Trust has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Ramco-Gershenson Properties Trust has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Profitability

This table compares Four Corners Property Trust and Ramco-Gershenson Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Four Corners Property Trust 63.74% 17.21% 8.58%
Ramco-Gershenson Properties Trust 15.05% 4.99% 1.86%

Dividends

Four Corners Property Trust pays an annual dividend of $0.97 per share and has a dividend yield of 3.9%. Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.7%. Four Corners Property Trust pays out 71.9% of its earnings in the form of a dividend. Ramco-Gershenson Properties Trust pays out 214.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ramco-Gershenson Properties Trust has raised its dividend for 4 consecutive years. Ramco-Gershenson Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Four Corners Property Trust and Ramco-Gershenson Properties Trust’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 $127.93 million 11.95 $98.64 million $1.35 18.51
Ramco-Gershenson Properties Trust $263.77 million 3.95 $165.05 million $0.41 32.00

Ramco-Gershenson Properties Trust has higher revenue and earnings than Four Corners Property Trust. Four Corners Property Trust is trading at a lower price-to-earnings ratio than Ramco-Gershenson Properties Trust, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

85.9% of Four Corners Property Trust shares are owned by institutional investors. 0.2% of Four Corners Property Trust shares are owned by insiders. Comparatively, 1.6% of Ramco-Gershenson Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Four Corners Property Trust beats Ramco-Gershenson Properties Trust on 9 of the 17 factors compared between the two stocks.

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.

Ramco-Gershenson Properties Trust Company Profile

Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.

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