Corporate Office Properties Trust (NYSE:OFC) and Four Corners Property Trust (NYSE:FCPT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
This table compares Corporate Office Properties Trust and Four Corners Property Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Corporate Office Properties Trust||12.49%||4.64%||1.99%|
|Four Corners Property Trust||57.05%||13.21%||6.78%|
This table compares Corporate Office Properties Trust and Four Corners Property Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Corporate Office Properties Trust||$578.11 million||4.87||$72.30 million||$2.01||12.88|
|Four Corners Property Trust||$133.21 million||14.53||$71.39 million||$1.36||21.01|
Corporate Office Properties Trust has higher revenue and earnings than Four Corners Property Trust. Corporate Office Properties Trust is trading at a lower price-to-earnings ratio than Four Corners Property Trust, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
97.5% of Corporate Office Properties Trust shares are owned by institutional investors. Comparatively, 92.5% of Four Corners Property Trust shares are owned by institutional investors. 0.6% of Corporate Office Properties Trust shares are owned by insiders. Comparatively, 0.3% of Four Corners Property Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Corporate Office Properties Trust has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.
This is a breakdown of current recommendations for Corporate Office Properties Trust and Four Corners Property Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Corporate Office Properties Trust||0||5||2||0||2.29|
|Four Corners Property Trust||0||1||1||0||2.50|
Corporate Office Properties Trust presently has a consensus target price of $27.00, suggesting a potential upside of 4.29%. Four Corners Property Trust has a consensus target price of $28.00, suggesting a potential downside of 2.00%. Given Corporate Office Properties Trust’s higher probable upside, analysts clearly believe Corporate Office Properties Trust is more favorable than Four Corners Property Trust.
Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 4.2%. Four Corners Property Trust pays an annual dividend of $1.15 per share and has a dividend yield of 4.0%. Corporate Office Properties Trust pays out 54.7% of its earnings in the form of a dividend. Four Corners Property Trust pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust has increased its dividend for 2 consecutive years. Corporate Office Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Corporate Office Properties Trust beats Four Corners Property Trust on 10 of the 17 factors compared between the two stocks.
Corporate Office Properties Trust Company Profile
COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (?IT?) related activities servicing what it believes are growing, durable, priority missions (?Defense/IT Locations?). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (?Regional Office Properties?). As of September 30, 2018, the Company derived 88% of its core portfolio annualized revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including six buildings owned through an unconsolidated joint venture, COPT's core portfolio of 159 office and data center shell properties encompassed 17.7 million square feet and was 94.0% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts.
Four Corners Property Trust Company Profile
FCPT is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and related food services industry.
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