Four Corners Property Trust (NYSE: FCPT) and Taubman Centers (NYSE:TCO) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitabiliy, institutional ownership, risk and analyst recommendations.

Risk & Volatility

Four Corners Property Trust has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Taubman Centers has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Profitability

This table compares Four Corners Property Trust and Taubman Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Four Corners Property Trust 62.08% 17.13% 8.64%
Taubman Centers 17.09% -168.15% 2.68%

Insider & Institutional Ownership

87.8% of Four Corners Property Trust shares are owned by institutional investors. 0.2% of Four Corners Property Trust shares are owned by company insiders. Comparatively, 31.2% of Taubman Centers shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Four Corners Property Trust pays an annual dividend of $0.97 per share and has a dividend yield of 3.8%. Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 4.1%. Four Corners Property Trust pays out 74.6% of its earnings in the form of a dividend. Taubman Centers pays out 152.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Four Corners Property Trust and Taubman Centers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Four Corners Property Trust 0 2 0 0 2.00
Taubman Centers 0 6 4 0 2.40

Four Corners Property Trust currently has a consensus price target of $26.00, indicating a potential upside of 2.85%. Taubman Centers has a consensus price target of $75.75, indicating a potential upside of 24.43%. Given Taubman Centers’ stronger consensus rating and higher probable upside, analysts clearly believe Taubman Centers is more favorable than Four Corners Property Trust.

Earnings & Valuation

This table compares Four Corners Property Trust and Taubman Centers’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Four Corners Property Trust $125.67 million 12.07 $97.33 million $1.30 19.45
Taubman Centers $615.69 million 6.00 $323.83 million $1.64 37.12

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

Summary

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

About Four Corners Property Trust

Four Corners Property Trust, Inc. is a self-administered company and real estate investment trust (REIT), which owns, acquires and leases properties for use in the restaurant and food service related industries. The Company operates through two segments: real estate operations and restaurant operations. Its real estate operations segment consists of rental revenues primarily generated by leasing restaurant properties to tenants through triple-net lease arrangements under which the tenant is primarily responsible for ongoing costs relating to the properties. Its restaurant operations segment is conducted through its taxable REIT subsidiary, Kerrow Holdings, LLC, and consists of its Kerrow Restaurant Operating Business. As of December 31, 2016, it had owned 481 properties, all within the continental United States. Of these properties, 475 were held for investment and leased to tenants under triple-net leases and had an aggregate leasable area of approximately 3.4 million square feet.

About Taubman Centers

Taubman Centers, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. Its owned portfolio of operating centers as of December 31, 2016 consisted of 23 urban and suburban shopping centers operating in 11 the United States states, Puerto Rico, South Korea, and China. The consolidated businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia).

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