STORE Capital (NYSE: STOR) is one of 71 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its competitors? We will compare STORE Capital to related businesses based on the strength of its institutional ownership, analyst recommendations, dividends, profitability, valuation, earnings and risk.

Earnings and Valuation

This table compares STORE Capital and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
STORE Capital $376.34 million $123.32 million 29.35
STORE Capital Competitors $536.81 million $100.12 million 413.83

STORE Capital’s competitors have higher revenue, but lower earnings than STORE Capital. STORE Capital is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares STORE Capital and its competitors’ 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%
STORE Capital Competitors 47.56% 6.32% 3.56%

Risk and Volatility

STORE Capital has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, STORE Capital’s competitors have a beta of 0.78, indicating that their average share price is 22% 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 4.7%. STORE Capital 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 91.3% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for STORE Capital and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STORE Capital 0 5 9 0 2.64
STORE Capital Competitors 587 2481 2083 23 2.30

STORE Capital presently has a consensus target price of $26.91, suggesting a potential upside of 3.02%. As a group, “Commercial REITs” companies have a potential upside of 7.06%. Given STORE Capital’s competitors higher probable upside, analysts clearly believe STORE Capital has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

98.1% of STORE Capital 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 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 stock is poised for long-term growth.

Summary

STORE Capital competitors beat STORE Capital on 10 of the 15 factors compared.

STORE Capital 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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