Four Corners Property Trust (NYSE: FCPT) and Washington Prime Group (NYSE:WPG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Dividends

Four Corners Property Trust pays an annual dividend of $0.97 per share and has a dividend yield of 3.6%. Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 13.7%. Four Corners Property Trust pays out 68.8% of its earnings in the form of a dividend. Washington Prime Group pays out 116.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

87.4% of Four Corners Property Trust shares are owned by institutional investors. Comparatively, 89.6% of Washington Prime Group shares are owned by institutional investors. 0.2% of Four Corners Property Trust shares are owned by company insiders. Comparatively, 0.3% of Washington Prime Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Four Corners Property Trust has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500. Comparatively, Washington Prime Group has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Four Corners Property Trust and Washington Prime Group’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%
Washington Prime Group 21.85% 16.17% 3.57%

Valuation & Earnings

This table compares Four Corners Property Trust and Washington Prime Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Four Corners Property Trust $124.02 million 13.13 $156.80 million $1.41 18.87
Washington Prime Group $843.47 million 1.60 $67.13 million $0.86 8.47

Four Corners Property Trust has higher revenue, but lower earnings than Washington Prime Group. Washington Prime Group 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.

Analyst Ratings

This is a summary of current ratings for Four Corners Property Trust and Washington Prime Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Four Corners Property Trust 0 1 2 0 2.67
Washington Prime Group 1 0 0 0 1.00

Four Corners Property Trust currently has a consensus price target of $26.67, indicating a potential upside of 0.25%. Given Four Corners Property Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Four Corners Property Trust is more favorable than Washington Prime Group.

Summary

Four Corners Property Trust beats Washington Prime Group on 11 of the 16 factors compared between the two stocks.

Four Corners Property Trust Company Profile

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.

Washington Prime Group Company Profile

Washington Prime Group Inc. (WPG Inc.), formerly WP Glimcher Inc., operates as a self-administered and self-managed real estate investment trust (REIT). The Company’s primary business is the ownership, development and management of retail real estate within the United States. The Company owns, develops and manages enclosed retail properties and community centers. As of December 31, 2016, its assets consisted of material interests in 114 shopping centers in the United States, consisting of approximately 63 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of new shopping centers or the expansion of existing properties. Washington Prime Group, L.P. is the Company’s majority-owned partnership subsidiary that owns, develops and manages, through its affiliates, all of WPG Inc.’s real estate properties and other assets. Its properties include Irving Mall, Lindale Mall, Markland Plaza and Royal Eagle Plaza.

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