Brookfield Canada Office Properties (NYSE: BOXC) and Store Capital (NYSE:STOR) are both financials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.
This table compares Brookfield Canada Office Properties and Store Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Canada Office Properties||7.64%||1.26%||0.65%|
This table compares Brookfield Canada Office Properties and Store Capital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Canada Office Properties||N/A||N/A||N/A||$1.16||N/A|
|Store Capital||$452.85 million||10.64||$162.03 million||$0.69||35.94|
Store Capital has higher revenue and earnings than Brookfield Canada Office Properties. Brookfield Canada Office Properties is trading at a lower price-to-earnings ratio than Store Capital, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Brookfield Canada Office Properties has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Store Capital has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.
Brookfield Canada Office Properties pays an annual dividend of $0.97 per share. Store Capital pays an annual dividend of $1.24 per share and has a dividend yield of 5.0%. Brookfield Canada Office Properties pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Store Capital pays out 179.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Store Capital has raised its dividend for 2 consecutive years. Store Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent recommendations and price targets for Brookfield Canada Office Properties and Store Capital, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Canada Office Properties||0||1||0||0||2.00|
Store Capital has a consensus price target of $27.00, indicating a potential upside of 8.87%.
Institutional and Insider Ownership
20.1% of Brookfield Canada Office Properties shares are held by institutional investors. Comparatively, 94.2% of Store Capital shares are held by institutional investors. 0.9% of Store Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Store Capital beats Brookfield Canada Office Properties on 11 of the 14 factors compared between the two stocks.
About Brookfield Canada Office Properties
Brookfield Canada Office Properties is a Canada-based real estate investment trust (REIT). The Company invests, develops and operates commercial office properties in Toronto, Ottawa, Calgary and Vancouver. The Company’s commercial-property portfolio consists of interests in approximately 25 properties totaling approximately 21.1 million square feet, including approximately 4.0 million square feet of parking and other. The Company’s development portfolio consists of the Brookfield Place Calgary East development site totaling approximately 1.4 million square feet in Calgary. The Company also invests in ongoing maintenance and capital improvement projects. The Company focuses on the markets, which include financial, government and energy sectors, which are primarily located in the cities of Toronto and Calgary. Its properties include 2 Queen Street East, Queen’s Quay Terminal, Exchange Tower, Bankers Hall Retail, Suncor Energy Centre, Jean Edmonds Tower and Royal Centre.
About Store Capital
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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