Cole Real Estate Investments (NYSE: COLE) and Store Capital (NYSE:STOR) are both financials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
This table compares Cole Real Estate Investments and Store Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cole Real Estate Investments||N/A||N/A||N/A|
Store Capital pays an annual dividend of $1.24 per share and has a dividend yield of 5.0%. Cole Real Estate Investments does not pay a dividend. 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. Cole Real Estate Investments has increased its dividend for 2 consecutive years.
Earnings & Valuation
This table compares Cole Real Estate Investments 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|
|Cole Real Estate Investments||N/A||N/A||N/A||$0.20||N/A|
|Store Capital||$452.85 million||10.64||$162.03 million||$0.69||35.94|
Store Capital has higher revenue and earnings than Cole Real Estate Investments. Cole Real Estate Investments is trading at a lower price-to-earnings ratio than Store Capital, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.2% of Store Capital shares are owned by institutional investors. 0.9% of Store Capital shares 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.
This is a summary of current recommendations and price targets for Cole Real Estate Investments and Store Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cole Real Estate Investments||0||0||0||0||N/A|
Store Capital has a consensus price target of $27.00, suggesting a potential upside of 8.87%.
Store Capital beats Cole Real Estate Investments on 9 of the 11 factors compared between the two stocks.
About Cole Real Estate Investments
Cole Real Estate Investments, Inc. is a real estate investment trust (REIT). The Company operates in two segments: Real Estate Investment (REI) and Private Capital Management (PCM). The Company’s REI segment is conducted through Cole REIT III Operating Partnership, LP (CCPT III OP). The Company’s PCM segment is conducted through Cole Capital Advisors, Inc. (CCA). Through its REI segment, the Company acquires and operates a diverse portfolio of core commercial real estate investments primarily consisting of necessity retail properties located throughout the United States, including United States protectorates. The Company’s PCM segment is responsible for managing the Managed REITs’ affairs on a day-to-day basis, identifying and making acquisitions and investments on the Managed REITs’ behalf. In February 2014, American Realty Capital Properties Inc purchased Cole Real Estate Investments, Inc.
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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