Scentre Group (OTCMKTS:STGPF – Get Free Report) and Four Corners Property Trust (NYSE:FCPT – Get Free Report) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Profitability
This table compares Scentre Group and Four Corners Property Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Scentre Group | N/A | N/A | N/A |
Four Corners Property Trust | 37.44% | 7.65% | 3.97% |
Valuation and Earnings
This table compares Scentre Group and Four Corners Property Trust’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Scentre Group | N/A | N/A | N/A | $0.26 | 8.37 |
Four Corners Property Trust | $257.12 million | 8.64 | $95.34 million | $1.07 | 22.56 |
Dividends
Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 9.0%. Four Corners Property Trust pays an annual dividend of $1.38 per share and has a dividend yield of 5.7%. Scentre Group pays out 75.6% 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 has raised its dividend for 4 consecutive years. Scentre Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of current recommendations and price targets for Scentre Group and Four Corners Property Trust, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Scentre Group | 0 | 0 | 0 | 0 | N/A |
Four Corners Property Trust | 0 | 0 | 2 | 0 | 3.00 |
Four Corners Property Trust has a consensus target price of $26.33, suggesting a potential upside of 9.09%. Given Four Corners Property Trust’s higher probable upside, analysts clearly believe Four Corners Property Trust is more favorable than Scentre Group.
Insider & Institutional Ownership
67.9% of Scentre Group shares are owned by institutional investors. Comparatively, 98.7% of Four Corners Property Trust shares are owned by institutional investors. 1.2% of Four Corners Property Trust shares are owned by 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.
Summary
Four Corners Property Trust beats Scentre Group on 11 of the 13 factors compared between the two stocks.
About Scentre Group
Scentre Group owns and operates a leading portfolio of 42 Westfield destinations with 37 located in Australia and five in New Zealand encompassing more than 12,000 outlets. Our Westfield destinations are strategically located in the heart of the local communities we serve. Our centres are considered community hubs that connect people with services and experiences that enrich their daily lives. The Trust has a joint interest in 39 Westfield destinations.
About Four Corners Property Trust
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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