Critical Review: Kimco Realty Corporation (KIM) vs. Four Corners Property Trust (FCPT)
Kimco Realty Corporation (NYSE: KIM) and Four Corners Property Trust (NYSE:FCPT) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
This is a summary of current ratings and price targets for Kimco Realty Corporation and Four Corners Property Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kimco Realty Corporation||0||7||7||0||2.50|
|Four Corners Property Trust||0||1||2||0||2.67|
Kimco Realty Corporation currently has a consensus target price of $24.25, suggesting a potential upside of 26.61%. Four Corners Property Trust has a consensus target price of $26.67, suggesting a potential upside of 3.28%. Given Kimco Realty Corporation’s higher possible upside, research analysts clearly believe Kimco Realty Corporation is more favorable than Four Corners Property Trust.
Volatility & Risk
Kimco Realty Corporation has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.
Earnings and Valuation
This table compares Kimco Realty Corporation and Four Corners Property Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Kimco Realty Corporation||$1.17 billion||6.96||$378.85 million||$0.86||22.27|
|Four Corners Property Trust||$124.02 million||12.74||$156.80 million||$1.41||18.31|
Kimco Realty Corporation has higher revenue and earnings than Four Corners Property Trust. Four Corners Property Trust is trading at a lower price-to-earnings ratio than Kimco Realty Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Kimco Realty Corporation and Four Corners Property Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kimco Realty Corporation||35.51%||7.73%||3.65%|
|Four Corners Property Trust||65.46%||17.37%||8.56%|
Insider and Institutional Ownership
89.4% of Kimco Realty Corporation shares are held by institutional investors. Comparatively, 87.2% of Four Corners Property Trust shares are held by institutional investors. 2.9% of Kimco Realty Corporation shares are held by insiders. Comparatively, 0.2% of Four Corners Property Trust shares are held 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.
Kimco Realty Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 5.6%. Four Corners Property Trust pays an annual dividend of $0.97 per share and has a dividend yield of 3.8%. Kimco Realty Corporation pays out 125.6% 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 pays out 68.8% of its earnings in the form of a dividend. Four Corners Property Trust has raised its dividend for 7 consecutive years.
Four Corners Property Trust beats Kimco Realty Corporation on 9 of the 17 factors compared between the two stocks.
About Kimco Realty Corporation
Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.
About Four Corners Property Trust
Four Corners Property Trust, Inc. is a self-administered company and real estate investment trust (REIT), which owns, acquires and leases properties for use in the restaurant and food service related industries. The Company operates through two segments: real estate operations and restaurant operations. Its real estate operations segment consists of rental revenues primarily generated by leasing restaurant properties to tenants through triple-net lease arrangements under which the tenant is primarily responsible for ongoing costs relating to the properties. Its restaurant operations segment is conducted through its taxable REIT subsidiary, Kerrow Holdings, LLC, and consists of its Kerrow Restaurant Operating Business. As of December 31, 2016, it had owned 481 properties, all within the continental United States. Of these properties, 475 were held for investment and leased to tenants under triple-net leases and had an aggregate leasable area of approximately 3.4 million square feet.
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