Head-To-Head Review: Columbia Property Trust (CXP) versus STORE Capital Corporation (STOR)
Columbia Property Trust (NYSE: CXP) and STORE Capital Corporation (NYSE:STOR) are both mid-cap financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
This is a summary of current recommendations and price targets for Columbia Property Trust and STORE Capital Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Columbia Property Trust||0||3||4||0||2.57|
|STORE Capital Corporation||0||3||8||0||2.73|
Columbia Property Trust currently has a consensus target price of $23.80, suggesting a potential upside of 10.29%. STORE Capital Corporation has a consensus target price of $27.06, suggesting a potential upside of 7.41%. Given Columbia Property Trust’s higher possible upside, equities analysts plainly believe Columbia Property Trust is more favorable than STORE Capital Corporation.
This table compares Columbia Property Trust and STORE Capital Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Columbia Property Trust||3.94%||0.17%||0.28%|
|STORE Capital Corporation||38.71%||5.98%||3.10%|
Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. STORE Capital Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 4.9%. Columbia Property Trust pays out 70.2% of its earnings in the form of a dividend. STORE Capital Corporation pays out 126.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Columbia Property Trust has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, STORE Capital Corporation has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.
Valuation and Earnings
This table compares Columbia Property Trust and STORE Capital Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Columbia Property Trust||$376.05 million||6.96||$171.48 million||$1.14||18.93|
|STORE Capital Corporation||$421.32 million||11.34||$381.86 million||$0.98||25.70|
STORE Capital Corporation has higher revenue and earnings than Columbia Property Trust. Columbia Property Trust is trading at a lower price-to-earnings ratio than STORE Capital Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
64.8% of Columbia Property Trust shares are held by institutional investors. 0.5% of Columbia Property Trust shares are held by company insiders. Comparatively, 0.9% of STORE Capital Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
STORE Capital Corporation beats Columbia Property Trust on 11 of the 16 factors compared between the two stocks.
Columbia Property Trust Company Profile
Columbia Property Trust, Inc. operates as a real estate investment trust (REIT), which owns and operates commercial real estate properties. The Company’s primary objective is to generate long-term shareholder returns from a combination of steadily growing cash flows and appreciation in its net asset values, through the acquisition and ownership of office buildings located principally in high-barrier-to-entry markets. The Company’s segments include New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles and all other office markets. The all other office markets segment consists of properties in similar, low-barrier to entry geographic locations, in which the Company does not plan to make further investments. The Company conducts its business primarily through Columbia Property Trust Operating Partnership, L.P. (Columbia Property Trust OP), which acquires, develops, owns, leases and operates real properties directly through subsidiaries or through joint ventures.
STORE Capital Corporation Company Profile
STORE Capital Corporation is an internally managed net-lease real estate investment trust. The Company is engaged in the acquisition, investment and management of single tenant operational real estate (STORE) properties. As of December 31, 2016, the Company owned a portfolio that consisted of investments in 1,660 property locations operated by 360 customers across 48 states. Its customers operate across a range of industries within the service, retail and manufacturing sectors of the United States economy, with restaurants, early childhood education centers, movie theaters, health clubs and furniture stores. The Company’s portfolio includes investments in approximately 1,330 property locations operated by over 300 customers across approximately 50 states. The Company provides real estate financing solutions principally to businesses that own STORE properties and operate within the broad-based service, retail and industrial sectors of the United States economy.
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