STORE Capital Corporation (NYSE: STOR) is one of 87 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its peers? We will compare STORE Capital Corporation to related businesses based on the strength of its earnings, dividends, risk, analyst recommendations, institutional ownership, profitability and valuation.

Dividends

STORE Capital Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 5.1%. STORE Capital Corporation pays out 126.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commercial REITs” companies pay a dividend yield of 4.0% and pay out 216.2% of their earnings in the form of a dividend. STORE Capital Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations for STORE Capital Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STORE Capital Corporation 0 4 9 0 2.69
STORE Capital Corporation Competitors 638 2518 2182 23 2.30

STORE Capital Corporation presently has a consensus price target of $27.00, indicating a potential upside of 10.02%. As a group, “Commercial REITs” companies have a potential upside of 8.55%. Given STORE Capital Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe STORE Capital Corporation is more favorable than its peers.

Institutional and Insider Ownership

69.5% of shares of all “Commercial REITs” companies are held by institutional investors. 0.9% of STORE Capital Corporation shares are held by insiders. Comparatively, 9.0% of shares of all “Commercial REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

STORE Capital Corporation has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, STORE Capital Corporation’s peers have a beta of 0.80, indicating that their average stock price is 20% less volatile than the S&P 500.

Profitability

This table compares STORE Capital Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STORE Capital Corporation 38.71% 5.98% 3.10%
STORE Capital Corporation Competitors 52.49% 6.70% 3.85%

Valuation & Earnings

This table compares STORE Capital Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
STORE Capital Corporation $421.32 million $381.86 million 25.04
STORE Capital Corporation Competitors $457.04 million $289.32 million 35.98

STORE Capital Corporation’s peers have higher revenue, but lower earnings than STORE Capital Corporation. STORE Capital Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

STORE Capital Corporation peers beat STORE Capital Corporation on 9 of the 15 factors compared.

STORE Capital Corporation Company Profile

STORE Capital Corporation is an internally managed net-lease real estate investment trust. The Company is engaged in the acquisition, investment and management of single tenant operational real estate (STORE) properties. As of December 31, 2016, the Company owned a portfolio that consisted of investments in 1,660 property locations operated by 360 customers across 48 states. Its customers operate across a range of industries within the service, retail and manufacturing sectors of the United States economy, with restaurants, early childhood education centers, movie theaters, health clubs and furniture stores. The Company’s portfolio includes investments in approximately 1,330 property locations operated by over 300 customers across approximately 50 states. The Company provides real estate financing solutions principally to businesses that own STORE properties and operate within the broad-based service, retail and industrial sectors of the United States economy.

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