Four Corners Property Trust (NYSE: FCPT) and Wheeler Real Estate Investment Trust (NASDAQ:WHLR) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Profitability

This table compares Four Corners Property Trust and Wheeler Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Four Corners Property Trust 65.46% 17.37% 8.56%
Wheeler Real Estate Investment Trust -13.61% -16.99% -1.92%

Volatility and Risk

Four Corners Property Trust has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Wheeler Real Estate Investment Trust has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Earnings & Valuation

This table compares Four Corners Property Trust and Wheeler Real Estate Investment Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Four Corners Property Trust $124.02 million 13.11 $156.80 million $1.41 18.84
Wheeler Real Estate Investment Trust $44.16 million 2.01 -$11.20 million ($2.03) -5.01

Four Corners Property Trust has higher revenue and earnings than Wheeler Real Estate Investment Trust. Wheeler Real Estate Investment 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.

Institutional and Insider Ownership

87.4% of Four Corners Property Trust shares are owned by institutional investors. Comparatively, 68.6% of Wheeler Real Estate Investment Trust shares are owned by institutional investors. 0.2% of Four Corners Property Trust shares are owned by company insiders. Comparatively, 5.3% of Wheeler Real Estate Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Four Corners Property Trust pays an annual dividend of $0.97 per share and has a dividend yield of 3.7%. Wheeler Real Estate Investment Trust pays an annual dividend of $1.36 per share and has a dividend yield of 13.4%. Four Corners Property Trust pays out 68.8% of its earnings in the form of a dividend. Wheeler Real Estate Investment Trust pays out -67.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wheeler Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Four Corners Property Trust and Wheeler Real Estate Investment Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Four Corners Property Trust 0 1 2 0 2.67
Wheeler Real Estate Investment Trust 0 2 4 0 2.67

Four Corners Property Trust currently has a consensus price target of $26.67, indicating a potential upside of 0.40%. Wheeler Real Estate Investment Trust has a consensus price target of $15.40, indicating a potential upside of 51.43%. Given Wheeler Real Estate Investment Trust’s higher possible upside, analysts clearly believe Wheeler Real Estate Investment Trust is more favorable than Four Corners Property Trust.

Summary

Four Corners Property Trust beats Wheeler Real Estate Investment Trust on 9 of the 15 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 Wheeler Real Estate Investment Trust

Wheeler Real Estate Investment Trust, Inc. is a self-managed commercial real estate investment company. The Company focuses on acquiring and managing retail properties with a primary focus on grocery-anchored centers. As of December 31, 2016, the Company owned a portfolio consisting of 74 properties, including 59 retail shopping centers and five freestanding retail properties totaling 4,906,511 gross leasable square feet of which approximately 94% were leased, one office property, eight undeveloped land parcels totaling approximately 70 acres and one redevelopment project. Its properties are located in Virginia, North Carolina, South Carolina, Florida, Georgia, Kentucky, Oklahoma, Tennessee, Alabama, New Jersey, Pennsylvania and West Virginia. Its properties include Alex City Marketplace, Berkley Shopping Center, Clover Plaza, Darien Shopping Center, Cypress Shopping Center, Harrodsburg Marketplace, LaGrange Marketplace, Riverbridge Shopping Center and Village of Martinsville.

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