Store Capital (STOR) vs. Excel Trust (EXL) Head to Head Analysis

Store Capital (NYSE: STOR) and Excel Trust (NYSE:EXL) are both commercial reits – nec companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Store Capital and Excel Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Store Capital $376.34 million 11.73 $123.32 million $0.67 34.69
Excel Trust N/A N/A N/A $0.26 60.92

Store Capital has higher revenue and earnings than Excel Trust. Store Capital is trading at a lower price-to-earnings ratio than Excel Trust, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

94.8% of Store Capital shares are held by institutional investors. 0.9% of Store Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Store Capital has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Excel Trust has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Dividends

Store Capital pays an annual dividend of $1.24 per share and has a dividend yield of 5.3%. Excel Trust does not pay a dividend. Store Capital pays out 185.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Excel Trust has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Store Capital and Excel Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Store Capital 0 4 9 0 2.69
Excel Trust 0 0 0 0 N/A

Store Capital currently has a consensus target price of $27.00, suggesting a potential upside of 16.18%. Given Store Capital’s higher possible upside, equities research analysts clearly believe Store Capital is more favorable than Excel Trust.

Profitability

This table compares Store Capital and Excel Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Store Capital 35.67% 5.35% 2.82%
Excel Trust 9.45% 0.65% 0.88%

Summary

Store Capital beats Excel Trust on 10 of the 14 factors compared between the two stocks.

About Store Capital

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.

About Excel Trust

Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.

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