Critical Contrast: Four Corners Property Trust (NYSE:FCPT) vs. Peakstone Realty Trust (NYSE:PKST)

Peakstone Realty Trust (NYSE:PKST) 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 dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 6.8%. Four Corners Property Trust pays an annual dividend of $1.38 per share and has a dividend yield of 4.9%. Peakstone Realty Trust pays out -5.8% of its earnings in the form of a dividend. 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. Peakstone Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Peakstone Realty Trust and Four Corners Property Trust’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peakstone Realty Trust	$239.95 million	1.99	-$550.58 million	($15.55)	-0.85
Four Corners Property Trust	$262.91 million	9.82	$95.34 million	$1.07	26.24

Four Corners Property Trust has higher revenue and earnings than Peakstone Realty Trust. Peakstone Realty Trust 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-60.76%	-12.06%	-5.25%
Four Corners Property Trust	37.01%	7.72%	3.95%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Peakstone Realty Trust and Four Corners Property Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	0	1	0	0	2.00
Four Corners Property Trust	0	2	1	1	2.75

Peakstone Realty Trust presently has a consensus price target of $13.00, suggesting a potential downside of 1.22%. Four Corners Property Trust has a consensus price target of $27.00, suggesting a potential downside of 3.85%. Given Peakstone Realty Trust’s higher probable upside, research analysts plainly believe Peakstone Realty Trust is more favorable than Four Corners Property Trust.

Risk & Volatility

Peakstone Realty Trust has a beta of 2.63, meaning that its share price is 163% more volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

39.0% of Peakstone Realty Trust shares are held by institutional investors. Comparatively, 98.7% of Four Corners Property Trust shares are held by institutional investors. 0.4% of Peakstone Realty Trust shares are held by insiders. Comparatively, 1.2% 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 will outperform the market over the long term.

Summary

Four Corners Property Trust beats Peakstone Realty Trust on 13 of the 17 factors compared between the two stocks.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

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.