Four Corners Property Trust (NYSE:FCPT) & Extra Space Storage (NYSE:EXR) Critical Contrast

Four Corners Property Trust (NYSE:FCPT) and Extra Space Storage (NYSE:EXR) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Four Corners Property Trust has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Extra Space Storage has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Dividends

Four Corners Property Trust pays an annual dividend of $1.47 per share and has a dividend yield of 5.8%. Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.5%. Four Corners Property Trust pays out 132.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Extra Space Storage pays out 143.0% 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 has raised its dividend for 5 consecutive years and Extra Space Storage has raised its dividend for 1 consecutive years. Four Corners Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Four Corners Property Trust and Extra Space Storage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Corners Property Trust	0	5	5	0	2.50
Extra Space Storage	0	9	7	0	2.44

Four Corners Property Trust presently has a consensus price target of $27.80, suggesting a potential upside of 10.34%. Extra Space Storage has a consensus price target of $149.20, suggesting a potential upside of 4.44%. Given Four Corners Property Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe Four Corners Property Trust is more favorable than Extra Space Storage.

Valuation & Earnings

This table compares Four Corners Property Trust and Extra Space Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$294.13 million	9.40	$112.36 million	$1.11	22.70
Extra Space Storage	$3.38 billion	8.94	$974.00 million	$4.53	31.54

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

Institutional and Insider Ownership

98.7% of Four Corners Property Trust shares are owned by institutional investors. Comparatively, 99.1% of Extra Space Storage shares are owned by institutional investors. 1.2% of Four Corners Property Trust shares are owned by insiders. Comparatively, 1.0% of Extra Space Storage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Four Corners Property Trust and Extra Space Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Four Corners Property Trust	38.70%	7.35%	4.05%
Extra Space Storage	27.80%	6.70%	3.27%

Summary

Four Corners Property Trust beats Extra Space Storage on 10 of the 17 factors compared between the two stocks.

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.

About Extra Space Storage

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.