Kite Realty Group Trust (NYSE: KRG) and Four Corners Property Trust (NYSE:FCPT) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.21 per share and has a dividend yield of 6.1%. Four Corners Property Trust pays an annual dividend of $0.97 per share and has a dividend yield of 3.8%. Kite Realty Group Trust pays out 864.3% 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 71.9% of its earnings in the form of a dividend. Four Corners Property Trust has increased its dividend for 3 consecutive years.

Institutional & Insider Ownership

95.7% of Kite Realty Group Trust shares are held by institutional investors. Comparatively, 87.8% of Four Corners Property Trust shares are held by institutional investors. 1.9% of Kite Realty Group Trust shares are held by company insiders. Comparatively, 0.2% of Four Corners Property Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Kite Realty Group Trust and Four Corners Property Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kite Realty Group Trust 0 3 3 1 2.71
Four Corners Property Trust 0 2 2 0 2.50

Kite Realty Group Trust presently has a consensus price target of $26.00, suggesting a potential upside of 30.13%. Four Corners Property Trust has a consensus price target of $26.67, suggesting a potential upside of 5.03%. Given Kite Realty Group Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Kite Realty Group Trust is more favorable than Four Corners Property Trust.

Profitability

This table compares Kite Realty Group Trust and Four Corners Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kite Realty Group Trust 3.29% 0.73% 0.33%
Four Corners Property Trust 63.74% 17.21% 8.58%

Risk and Volatility

Kite Realty Group Trust has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Earnings & Valuation

This table compares Kite Realty Group Trust and Four Corners Property Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kite Realty Group Trust $360.76 million 4.63 $224.39 million $0.14 142.71
Four Corners Property Trust $127.93 million 12.15 $98.65 million $1.35 18.81

Kite Realty Group 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 Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Kite Realty Group Trust beats Four Corners Property Trust on 10 of the 18 factors compared between the two stocks.

About Kite Realty Group Trust

Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.

About Four Corners Property Trust

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.

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