Analyzing Four Corners Property Trust (NYSE:FCPT) and Douglas Emmett (NYSE:DEI)

Four Corners Property Trust (NYSE:FCPT) and Douglas Emmett (NYSE:DEI) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

98.7% of Four Corners Property Trust shares are held by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are held by institutional investors. 1.2% of Four Corners Property Trust shares are held by insiders. Comparatively, 15.1% of Douglas Emmett shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Four Corners Property Trust and Douglas Emmett”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$268.07 million	10.01	$100.47 million	$1.08	23.78
Douglas Emmett	$986.48 million	2.79	$23.52 million	$0.22	74.61

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Four Corners Property Trust and Douglas Emmett, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Corners Property Trust	0	2	3	0	2.60
Douglas Emmett	0	5	4	0	2.44

Four Corners Property Trust currently has a consensus target price of $29.50, indicating a potential upside of 14.87%. Douglas Emmett has a consensus target price of $18.13, indicating a potential upside of 10.42%. Given Four Corners Property Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Four Corners Property Trust is more favorable than Douglas Emmett.

Volatility & Risk

Four Corners Property Trust has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Dividends

Four Corners Property Trust pays an annual dividend of $1.42 per share and has a dividend yield of 5.5%. Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 4.6%. Four Corners Property Trust pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Douglas Emmett pays out 345.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust has increased its dividend for 5 consecutive years. Four Corners Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Four Corners Property Trust and Douglas Emmett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Four Corners Property Trust	37.87%	7.40%	3.96%
Douglas Emmett	3.77%	1.04%	0.40%

Summary

Four Corners Property Trust beats Douglas Emmett on 12 of the 17 factors compared between the two stocks.

About Four Corners Property Trust

Four Corners Property Trust, Inc. engages in the owning, acquisition, and leasing of properties for use in the restaurant and food-service related industries. It operates through the Real Estate Operations and Restaurant Operations segments. The Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment includes the Kerrow Restaurant operating business. The company was founded on July 2, 2015 and is headquartered in Mill Valley, CA.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.