Financial Analysis: STORE Capital Corporation (STOR) vs. The Competition
STORE Capital Corporation (NYSE: STOR) is one of 78 publicly-traded companies in the “Commercial REITs” industry, but how does it weigh in compared to its rivals? We will compare STORE Capital Corporation to related companies based on the strength of its earnings, analyst recommendations, profitability, dividends, risk, institutional ownership and valuation.
Earnings & Valuation
This table compares STORE Capital Corporation and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|STORE Capital Corporation||$376.34 million||$123.32 million||29.17|
|STORE Capital Corporation Competitors||$536.81 million||$100.12 million||464.63|
STORE Capital Corporation’s rivals have higher revenue, but lower earnings than STORE Capital Corporation. STORE Capital Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
97.3% of STORE Capital Corporation shares are owned by institutional investors. Comparatively, 71.6% of shares of all “Commercial REITs” companies are owned by institutional investors. 0.9% of STORE Capital Corporation shares are owned by insiders. Comparatively, 7.5% of shares of all “Commercial REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
STORE Capital Corporation has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, STORE Capital Corporation’s rivals have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.
STORE Capital Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 4.8%. STORE Capital Corporation pays out 139.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commercial REITs” companies pay a dividend yield of 3.9% and pay out 189.8% of their earnings in the form of a dividend. STORE Capital Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This table compares STORE Capital Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|STORE Capital Corporation||35.67%||5.35%||2.82%|
|STORE Capital Corporation Competitors||54.83%||6.88%||3.97%|
This is a breakdown of recent ratings and price targets for STORE Capital Corporation and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|STORE Capital Corporation||0||5||9||0||2.64|
|STORE Capital Corporation Competitors||656||2597||2229||24||2.29|
STORE Capital Corporation currently has a consensus price target of $26.91, suggesting a potential upside of 3.66%. As a group, “Commercial REITs” companies have a potential upside of 6.58%. Given STORE Capital Corporation’s rivals higher probable upside, analysts plainly believe STORE Capital Corporation has less favorable growth aspects than its rivals.
STORE Capital Corporation rivals 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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