STORE Capital Corporation (NYSE: STOR) is one of 90 public companies in the “Commercial REITs” industry, but how does it compare to its peers? We will compare STORE Capital Corporation to related companies based on the strength of its institutional ownership, valuation, dividends, risk, profitability, analyst recommendations and earnings.

Dividends

STORE Capital Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 4.9%. 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 161.8% of their earnings in the form of a dividend. STORE Capital Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares STORE Capital Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STORE Capital Corporation 35.67% 5.50% 2.86%
STORE Capital Corporation Competitors 53.27% 6.71% 3.86%

Earnings & Valuation

This table compares STORE Capital Corporation and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
STORE Capital Corporation $376.34 million $123.32 million 28.69
STORE Capital Corporation Competitors $544.77 million $101.33 million 414.09

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

Institutional and Insider Ownership

69.5% of shares of all “Commercial REITs” companies are held by institutional investors. 0.9% of STORE Capital Corporation shares are held by insiders. Comparatively, 9.0% of shares of all “Commercial REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and 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 peers have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for STORE Capital Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STORE Capital Corporation 0 4 9 0 2.69
STORE Capital Corporation Competitors 646 2552 2209 24 2.30

STORE Capital Corporation currently has a consensus target price of $27.00, indicating a potential upside of 5.76%. As a group, “Commercial REITs” companies have a potential upside of 7.54%. Given STORE Capital Corporation’s peers higher possible upside, analysts plainly believe STORE Capital Corporation has less favorable growth aspects than its peers.

Summary

STORE Capital Corporation peers beat STORE Capital Corporation on 10 of the 15 factors compared.

About STORE Capital Corporation

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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