CorEnergy Infrastructure Trust (NYSE: CORR) and Drive Shack (NYSE:DS) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

69.9% of CorEnergy Infrastructure Trust shares are owned by institutional investors. Comparatively, 38.6% of Drive Shack shares are owned by institutional investors. 1.0% of CorEnergy Infrastructure Trust shares are owned by company insiders. Comparatively, 7.2% of Drive Shack shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares CorEnergy Infrastructure Trust and Drive Shack’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CorEnergy Infrastructure Trust 38.26% 9.04% 5.17%
Drive Shack -7.05% 25.92% 3.08%

Dividends

CorEnergy Infrastructure Trust pays an annual dividend of $3.00 per share and has a dividend yield of 8.8%. Drive Shack pays an annual dividend of $0.24 per share and has a dividend yield of 9.1%. CorEnergy Infrastructure Trust pays out 124.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Drive Shack pays out -68.6% of its earnings in the form of a dividend. Drive Shack is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations for CorEnergy Infrastructure Trust and Drive Shack, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CorEnergy Infrastructure Trust 1 2 1 0 2.00
Drive Shack 0 1 0 0 2.00

CorEnergy Infrastructure Trust presently has a consensus price target of $35.50, suggesting a potential upside of 4.41%. Drive Shack has a consensus price target of $3.75, suggesting a potential upside of 42.59%. Given Drive Shack’s higher probable upside, analysts clearly believe Drive Shack is more favorable than CorEnergy Infrastructure Trust.

Risk and Volatility

CorEnergy Infrastructure Trust has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, Drive Shack has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Valuation and Earnings

This table compares CorEnergy Infrastructure Trust and Drive Shack’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CorEnergy Infrastructure Trust $88.83 million 4.56 $71.15 million $2.41 14.11
Drive Shack $292.74 million 0.60 $8.22 million ($0.35) -7.51

CorEnergy Infrastructure Trust has higher revenue, but lower earnings than Drive Shack. Drive Shack is trading at a lower price-to-earnings ratio than CorEnergy Infrastructure Trust, indicating that it is currently the more affordable of the two stocks.

Summary

CorEnergy Infrastructure Trust beats Drive Shack on 8 of the 14 factors compared between the two stocks.

CorEnergy Infrastructure Trust Company Profile

CorEnergy Infrastructure Trust, Inc. (CorEnergy) is focused on acquiring and financing midstream and downstream real estate assets within the United States energy infrastructure sector and concurrently entering into long-term triple-net participating leases with energy companies. The Company also provides other types of capital, including loans secured by energy infrastructure assets. The Company owns assets, such as pipelines, storage terminals, and transmission and distribution assets. It assets include Grand Isle Gathering System, Pinedale Liquids Gathering System (Pinedale LGS), Portland Terminal Facility, MoGas Pipeline System and Omega Pipeline.

Drive Shack Company Profile

Drive Shack Inc., formerly Newcastle Investment Corp., is a leisure company. The Company is an owner and operator of golf-related leisure and entertainment businesses. The Company’s portfolio consists of Drive Shack, which is engaged in developing nationwide network of golf entertainment venues; American Golf Corporation, which is a golf course company, and real estate-related assets. American Golf Corporation operates approximately 90 private, resort and public golf courses throughout the United States. It has a range of public and private golf courses in California, New York, and Georgia. It operates multiple facilities that provide golf, tennis, swimming and spa facilities, among others. Its online Pro Shop offers a range of golf gifts, such as personalized golf balls, golf luggage and accessories. Its public golf courses equipped with practice areas, golf shops, driving ranges, and food and beverage options.

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