Reviewing Four Corners Property Trust (NYSE:FCPT) & Stag Industrial (NYSE:STAG)

Four Corners Property Trust (NYSE:FCPT) and Stag Industrial (NYSE:STAG) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Volatility and Risk

Four Corners Property Trust has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Four Corners Property Trust	38.74%	7.38%	4.06%
Stag Industrial	28.25%	6.80%	3.47%

Institutional & Insider Ownership

98.7% of Four Corners Property Trust shares are owned by institutional investors. Comparatively, 88.7% of Stag Industrial shares are owned by institutional investors. 1.2% of Four Corners Property Trust shares are owned by insiders. Comparatively, 1.1% of Stag Industrial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Four Corners Property Trust pays an annual dividend of $1.47 per share and has a dividend yield of 5.6%. Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 3.7%. Four Corners Property Trust pays out 131.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial pays out 120.2% 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 increased its dividend for 5 consecutive years and Stag Industrial has increased its dividend for 7 consecutive years.

Valuation & Earnings

This table compares Four Corners Property Trust and Stag Industrial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$294.13 million	9.85	$112.36 million	$1.12	23.58
Stag Industrial	$863.82 million	9.30	$273.52 million	$1.29	32.58

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

Analyst Recommendations

This is a summary of recent ratings for Four Corners Property Trust and Stag Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Corners Property Trust	0	5	5	0	2.50
Stag Industrial	1	6	3	0	2.20

Four Corners Property Trust presently has a consensus target price of $27.89, suggesting a potential upside of 5.62%. Stag Industrial has a consensus target price of $40.70, suggesting a potential downside of 3.15%. Given Four Corners Property Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Four Corners Property Trust is more favorable than Stag Industrial.

Summary

Four Corners Property Trust beats Stag Industrial 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 Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.