Reviewing Essential Properties Realty Trust (NYSE:EPRT) & Store Capital (NYSE:STOR)

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Essential Properties Realty Trust (NYSE:EPRT) and Store Capital (NYSE:STOR) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Essential Properties Realty Trust and Store Capital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Essential Properties Realty Trust $96.22 million 17.81 $15.61 million N/A N/A
Store Capital $540.76 million 15.15 $216.97 million $1.84 19.60

Store Capital has higher revenue and earnings than Essential Properties Realty Trust.

Insider & Institutional Ownership

75.5% of Essential Properties Realty Trust shares are held by institutional investors. Comparatively, 91.0% of Store Capital shares are held by institutional investors. 2.1% of Essential Properties Realty Trust shares are held by insiders. Comparatively, 0.8% of Store Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Essential Properties Realty Trust pays an annual dividend of $0.88 per share and has a dividend yield of 3.9%. Store Capital pays an annual dividend of $1.32 per share and has a dividend yield of 3.7%. Store Capital pays out 71.7% of its earnings in the form of a dividend. Store Capital has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Essential Properties Realty Trust and Store Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essential Properties Realty Trust 0 5 6 0 2.55
Store Capital 0 0 7 0 3.00

Essential Properties Realty Trust currently has a consensus price target of $20.32, suggesting a potential downside of 9.49%. Store Capital has a consensus price target of $36.71, suggesting a potential upside of 1.79%. Given Store Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Store Capital is more favorable than Essential Properties Realty Trust.

Volatility & Risk

Essential Properties Realty Trust has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Store Capital has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Profitability

This table compares Essential Properties Realty Trust and Store Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Essential Properties Realty Trust 21.30% 2.73% 1.69%
Store Capital 36.14% 5.73% 3.07%

Summary

Store Capital beats Essential Properties Realty Trust on 10 of the 16 factors compared between the two stocks.

Essential Properties Realty Trust Company Profile

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical services, convenience stores, entertainment, early childhood education, and health and fitness on a long-term basis. As of December 31, 2018, it had a portfolio of 677 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is based in Princeton, New Jersey.

Store Capital Company Profile

STORE Capital Corporation is an internally managed net-lease real estate investment trust, or REIT, that is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. STORE Capital is one of the largest and fastest growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in 2,255 property locations, substantially all of which are profit centers, in 49 states.

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