Analyzing American Tower (NYSE:AMT) and Four Corners Property Trust (NYSE:FCPT)

American Tower (NYSE:AMTGet Free Report) and Four Corners Property Trust (NYSE:FCPTGet Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Institutional & Insider Ownership

92.7% of American Tower shares are held by institutional investors. Comparatively, 98.7% of Four Corners Property Trust shares are held by institutional investors. 0.2% of American Tower shares are held by insiders. Comparatively, 1.2% of Four Corners Property Trust 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for American Tower and Four Corners Property Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Tower 0 2 8 1 2.91
Four Corners Property Trust 0 0 2 0 3.00

American Tower currently has a consensus target price of $220.91, indicating a potential upside of 14.89%. Four Corners Property Trust has a consensus target price of $26.33, indicating a potential upside of 7.92%. Given American Tower’s higher possible upside, equities research analysts plainly believe American Tower is more favorable than Four Corners Property Trust.

Earnings and Valuation

This table compares American Tower 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
American Tower $11.14 billion 8.06 $1.48 billion $4.42 43.50
Four Corners Property Trust $250.61 million 8.96 $95.34 million $1.07 22.80

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

Dividends

American Tower pays an annual dividend of $6.48 per share and has a dividend yield of 3.4%. Four Corners Property Trust pays an annual dividend of $1.38 per share and has a dividend yield of 5.7%. American Tower pays out 146.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust pays out 129.0% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

American Tower has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares American Tower and Four Corners Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Tower 18.42% 18.45% 3.11%
Four Corners Property Trust 37.44% 7.65% 3.97%

Summary

Four Corners Property Trust beats American Tower on 9 of the 17 factors compared between the two stocks.

About American Tower

(Get Free Report)

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 224,000 communications sites and a highly interconnected footprint of U.S. data center facilities.

About Four Corners Property Trust

(Get Free Report)

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries.

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