Four Corners Property Trust (NYSE:FCPT) and Veris Residential (NYSE:VRE) Critical Review

Four Corners Property Trust (NYSE:FCPT) and Veris Residential (NYSE:VRE) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Dividends

Four Corners Property Trust pays an annual dividend of $1.42 per share and has a dividend yield of 5.2%. Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Four Corners Property Trust pays out 132.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Veris Residential pays out -188.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Four Corners Property Trust and Veris Residential”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$250.61 million	10.64	$95.34 million	$1.07	25.75
Veris Residential	$279.86 million	5.32	-$107.26 million	($0.17)	-94.26

Four Corners Property Trust has higher earnings, but lower revenue than Veris Residential. Veris Residential 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 Ratings

This is a summary of current ratings for Four Corners Property Trust and Veris Residential, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Corners Property Trust	0	3	3	0	2.50
Veris Residential	0	2	2	0	2.50

Four Corners Property Trust currently has a consensus price target of $30.60, indicating a potential upside of 11.05%. Veris Residential has a consensus price target of $18.25, indicating a potential upside of 13.88%. Given Veris Residential’s higher probable upside, analysts plainly believe Veris Residential is more favorable than Four Corners Property Trust.

Risk & Volatility

Four Corners Property Trust has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Veris Residential has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Four Corners Property Trust	37.27%	7.68%	3.96%
Veris Residential	-5.70%	-4.97%	-2.02%

Institutional & Insider Ownership

98.7% of Four Corners Property Trust shares are owned by institutional investors. Comparatively, 93.0% of Veris Residential shares are owned by institutional investors. 1.2% of Four Corners Property Trust shares are owned by company insiders. Comparatively, 16.0% of Veris Residential shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Four Corners Property Trust beats Veris Residential on 10 of the 15 factors compared between the two stocks.

About Four Corners Property Trust

Four Corners Property Trust, Inc. engages in the owning, acquisition, and leasing of properties for use in the restaurant and food-service related industries. It operates through the Real Estate Operations and Restaurant Operations segments. The Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment includes the Kerrow Restaurant operating business. The company was founded on July 2, 2015 and is headquartered in Mill Valley, CA.

About Veris Residential

Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.