Comparing Store Capital (STOR) and Annaly Commercial Real Estate Group (CXS)

Store Capital (NYSE: STOR) and Annaly Commercial Real Estate Group (NYSE:CXS) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Store Capital and Annaly Commercial Real Estate Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Store Capital 0 4 9 0 2.69
Annaly Commercial Real Estate Group 0 0 0 0 N/A

Store Capital currently has a consensus target price of $27.00, suggesting a potential upside of 13.35%.

Valuation and Earnings

This table compares Store Capital and Annaly Commercial Real Estate Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Store Capital $376.34 million 12.03 $123.32 million $0.67 35.55
Annaly Commercial Real Estate Group N/A N/A N/A $0.83 N/A

Store Capital has higher revenue and earnings than Annaly Commercial Real Estate Group. Annaly Commercial Real Estate Group is trading at a lower price-to-earnings ratio than Store Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Store Capital and Annaly Commercial Real Estate Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Store Capital 35.67% 5.35% 2.82%
Annaly Commercial Real Estate Group N/A N/A N/A

Institutional & Insider Ownership

94.8% of Store Capital shares are held by institutional investors. 0.9% of Store Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Store Capital pays an annual dividend of $1.24 per share and has a dividend yield of 5.2%. Annaly Commercial Real Estate Group does not pay a dividend. Store Capital pays out 185.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Annaly Commercial Real Estate Group has raised its dividend for 2 consecutive years.

Summary

Store Capital beats Annaly Commercial Real Estate Group on 8 of the 11 factors compared between the two stocks.

About Store Capital

STORE Capital Corporation is an internally managed net-lease real estate investment trust. The Company is engaged in the acquisition, investment and management of single tenant operational real estate (STORE) properties. As of December 31, 2016, the Company owned a portfolio that consisted of investments in 1,660 property locations operated by 360 customers across 48 states. Its customers operate across a range of industries within the service, retail and manufacturing sectors of the United States economy, with restaurants, early childhood education centers, movie theaters, health clubs and furniture stores. The Company’s portfolio includes investments in approximately 1,330 property locations operated by over 300 customers across approximately 50 states. The Company provides real estate financing solutions principally to businesses that own STORE properties and operate within the broad-based service, retail and industrial sectors of the United States economy.

About Annaly Commercial Real Estate Group

CreXus Investment Corp. is a real estate investment trust (REIT). The Company is a commercial real estate company that acquires, manages, and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate debt, commercial real property, commercial mortgage-backed securities (CMBS), other commercial real estate-related assets and Agency residential mortgage-backed securities. The Company also engages in long-term sale-leaseback and build-to-suit transactions with companies in the United States. The Company is managed by Fixed Income Discount Advisory Company (FIDAC). FIDAC is a wholly owned subsidiary of Annaly Capital Management, Inc. (Annaly).

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