Four Corners Property Trust (NYSE:FCPT) and Vornado Realty Trust (NYSE:VNO) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Profitability
This table compares Four Corners Property Trust and Vornado Realty Trust's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Four Corners Property Trust | 45.45% | 10.54% | 4.99% |
Vornado Realty Trust | 6.43% | 2.31% | 0.80% |
Risk and Volatility
Four Corners Property Trust has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.
Valuation and Earnings
This table compares Four Corners Property Trust and Vornado Realty Trust's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Four Corners Property Trust | $160.23 million | 12.69 | $72.62 million | $1.39 | 19.92 |
Vornado Realty Trust | $1.92 billion | 3.83 | $3.15 billion | $3.49 | 11.05 |
Vornado Realty Trust has higher revenue and earnings than Four Corners Property Trust. Vornado Realty Trust is trading at a lower price-to-earnings ratio than Four Corners Property Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Four Corners Property Trust and Vornado Realty Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Four Corners Property Trust | 0 | 0 | 2 | 1 | 3.33 |
Vornado Realty Trust | 4 | 5 | 1 | 0 | 1.70 |
Four Corners Property Trust currently has a consensus target price of $32.3333, suggesting a potential upside of 16.77%. Vornado Realty Trust has a consensus target price of $37.6667, suggesting a potential downside of 2.32%. Given Four Corners Property Trust's stronger consensus rating and higher possible upside, equities research analysts plainly believe Four Corners Property Trust is more favorable than Vornado Realty Trust.
Institutional & Insider Ownership
89.7% of Four Corners Property Trust shares are held by institutional investors. Comparatively, 73.7% of Vornado Realty Trust shares are held by institutional investors. 0.7% of Four Corners Property Trust shares are held by insiders. Comparatively, 8.3% of Vornado Realty 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.
Dividends
Four Corners Property Trust pays an annual dividend of $1.27 per share and has a dividend yield of 4.6%. Vornado Realty Trust pays an annual dividend of $2.12 per share and has a dividend yield of 5.5%. Four Corners Property Trust pays out 91.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vornado Realty Trust pays out 60.7% of its earnings in the form of a dividend. Four Corners Property Trust has increased its dividend for 1 consecutive years. Vornado Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Four Corners Property Trust beats Vornado Realty Trust on 10 of the 18 factors compared between the two stocks.