Head to Head Survey: Scentre Group (OTCMKTS:STGPF) and Four Corners Property Trust (NYSE:FCPT)

Scentre Group (OTCMKTS:STGPF) and Four Corners Property Trust (NYSE:FCPT) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Earnings & Valuation

This table compares Scentre Group and Four Corners Property Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scentre Group	N/A	N/A	N/A	$0.26	8.37
Four Corners Property Trust	$250.61 million	8.83	$95.34 million	$1.07	22.49

Four Corners Property Trust has higher revenue and earnings than Scentre Group. Scentre Group 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.

Analyst Recommendations

This is a breakdown of recent ratings for Scentre Group and Four Corners Property Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scentre Group	0	0	0	0	N/A
Four Corners Property Trust	0	0	2	0	3.00

Four Corners Property Trust has a consensus price target of $26.33, indicating a potential upside of 9.45%. Given Four Corners Property Trust’s higher possible upside, analysts clearly believe Four Corners Property Trust is more favorable than Scentre Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scentre Group	N/A	N/A	N/A
Four Corners Property Trust	37.44%	7.65%	3.97%

Institutional & Insider Ownership

67.9% of Scentre Group shares are owned by institutional investors. Comparatively, 98.7% of Four Corners Property Trust shares are owned by institutional investors. 1.2% of Four Corners Property Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 9.0%. Four Corners Property Trust pays an annual dividend of $1.38 per share and has a dividend yield of 5.7%. Scentre Group pays out 75.6% 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 129.0% 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 4 consecutive years. Scentre Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Four Corners Property Trust beats Scentre Group on 11 of the 13 factors compared between the two stocks.

About Scentre Group

Scentre Group owns and operates a leading portfolio of 42 Westfield destinations with 37 located in Australia and five in New Zealand encompassing more than 12,000 outlets. Our Westfield destinations are strategically located in the heart of the local communities we serve. Our centres are considered community hubs that connect people with services and experiences that enrich their daily lives. The Trust has a joint interest in 39 Westfield destinations.

About Four Corners Property Trust

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail 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.