Head to Head Review: Four Corners Property Trust (NYSE:FCPT) versus Millrose Properties (NYSE:MRP)
by Kim Johansen · The Markets DailyFour Corners Property Trust (NYSE:FCPT – Get Free Report) and Millrose Properties (NYSE:MRP – Get Free Report) are both mid-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
Earnings and Valuation
This table compares Four Corners Property Trust and Millrose Properties”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Four Corners Property Trust | $306.40 million | 8.92 | $112.36 million | $1.11 | 22.44 |
| Millrose Properties | $600.46 million | 7.70 | $379.86 million | $2.87 | 10.44 |
Millrose Properties has higher revenue and earnings than Four Corners Property Trust. Millrose Properties 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 recommendations for Four Corners Property Trust and Millrose Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Four Corners Property Trust | 0 | 5 | 5 | 0 | 2.50 |
| Millrose Properties | 0 | 1 | 2 | 1 | 3.00 |
Four Corners Property Trust presently has a consensus target price of $27.78, suggesting a potential upside of 11.51%. Millrose Properties has a consensus target price of $37.67, suggesting a potential upside of 25.65%. Given Millrose Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Millrose Properties is more favorable than Four Corners Property Trust.
Dividends
Four Corners Property Trust pays an annual dividend of $1.46 per share and has a dividend yield of 5.9%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.3%. Four Corners Property Trust pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties pays out 107.3% 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 5 consecutive years. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Four Corners Property Trust has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.
Insider & Institutional Ownership
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. Comparatively, 0.2% of Millrose Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Four Corners Property Trust and Millrose Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Four Corners Property Trust | 38.70% | 7.35% | 4.05% |
| Millrose Properties | 62.60% | 8.13% | 5.07% |
Summary
Millrose Properties beats Four Corners Property Trust on 11 of the 18 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 Millrose Properties
Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.