STORE Capital (NYSE: STOR) is one of 77 public companies in the “Commercial REITs” industry, but how does it weigh in compared to its peers? We will compare STORE Capital to related companies based on the strength of its profitability, earnings, risk, analyst recommendations, dividends, valuation and institutional ownership.
Risk and Volatility
STORE Capital has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, STORE Capital’s peers have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.
This table compares STORE Capital and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|STORE Capital Competitors||53.20%||6.65%||3.88%|
Insider and Institutional Ownership
95.7% of STORE Capital shares are owned by institutional investors. Comparatively, 73.2% of shares of all “Commercial REITs” companies are owned by institutional investors. 0.9% of STORE Capital shares are owned by company insiders. Comparatively, 7.3% of shares of all “Commercial REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares STORE Capital and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|STORE Capital||$376.34 million||$123.32 million||29.16|
|STORE Capital Competitors||$537.26 million||$100.34 million||445.72|
STORE Capital’s peers have higher revenue, but lower earnings than STORE Capital. STORE Capital 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.
This is a breakdown of recent ratings for STORE Capital and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|STORE Capital Competitors||634||2589||2231||24||2.30|
STORE Capital currently has a consensus target price of $26.91, suggesting a potential upside of 3.70%. As a group, “Commercial REITs” companies have a potential upside of 6.89%. Given STORE Capital’s peers higher probable upside, analysts plainly believe STORE Capital has less favorable growth aspects than its peers.
STORE Capital pays an annual dividend of $1.24 per share and has a dividend yield of 4.8%. STORE Capital 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 92.1% of their earnings in the form of a dividend.
STORE Capital peers beat STORE Capital on 10 of the 15 factors compared.
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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