Analyzing Public Storage (NYSE:PSA) and Four Corners Property Trust (NYSE:FCPT)

Public Storage (NYSE:PSAGet Rating) and Four Corners Property Trust (NYSE:FCPTGet Rating) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Public Storage and Four Corners Property Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Public Storage $3.42 billion 15.62 $1.95 billion $10.29 29.56
Four Corners Property Trust $199.38 million 10.31 $85.58 million $1.12 22.85

Public Storage has higher revenue and earnings than Four Corners Property Trust. Four Corners Property Trust is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.

Dividends

Public Storage pays an annual dividend of $8.00 per share and has a dividend yield of 2.6%. Four Corners Property Trust pays an annual dividend of $1.33 per share and has a dividend yield of 5.2%. Public Storage pays out 77.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust pays out 118.8% 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 raised its dividend for 5 consecutive years. Four Corners Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Public Storage and Four Corners Property Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Public Storage 0 5 6 1 2.67
Four Corners Property Trust 0 0 1 0 3.00

Public Storage currently has a consensus target price of $372.91, indicating a potential upside of 22.60%. Four Corners Property Trust has a consensus target price of $32.00, indicating a potential upside of 25.05%. Given Four Corners Property Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Four Corners Property Trust is more favorable than Public Storage.

Profitability

This table compares Public Storage and Four Corners Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Public Storage 54.79% 38.01% 12.04%
Four Corners Property Trust 42.15% 9.52% 4.66%

Insider & Institutional Ownership

78.5% of Public Storage shares are owned by institutional investors. Comparatively, 92.5% of Four Corners Property Trust shares are owned by institutional investors. 11.0% of Public Storage shares are owned by insiders. Comparatively, 1.1% of Four Corners Property Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Public Storage has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Summary

Public Storage beats Four Corners Property Trust on 12 of the 18 factors compared between the two stocks.

Public Storage Company Profile (Get Rating)

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the Shurgard brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.

Four Corners Property Trust Company Profile (Get Rating)

FCPT, headquartered in Mill Valley, CA, 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 retail industries.

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