Store Capital (NYSE:STOR) & MGM Growth Properties (NYSE:MGP) Head-To-Head Survey

Store Capital (NYSE:STOR) and MGM Growth Properties (NYSE:MGP) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Volatility and Risk

Store Capital has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, MGM Growth Properties has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Store Capital and MGM Growth Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Store Capital 0 0 7 0 3.00
MGM Growth Properties 0 3 7 0 2.70

Store Capital presently has a consensus target price of $37.14, indicating a potential downside of 7.21%. MGM Growth Properties has a consensus target price of $34.44, indicating a potential upside of 13.68%. Given MGM Growth Properties’ higher possible upside, analysts clearly believe MGM Growth Properties is more favorable than Store Capital.

Earnings and Valuation

This table compares Store Capital and MGM Growth Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Store Capital $540.76 million 17.38 $216.97 million $1.84 21.76
MGM Growth Properties $1.00 billion 2.90 $67.07 million $2.23 13.59

Store Capital has higher earnings, but lower revenue than MGM Growth Properties. MGM Growth Properties is trading at a lower price-to-earnings ratio than Store Capital, indicating that it is currently the more affordable of the two stocks.

Dividends

Store Capital pays an annual dividend of $1.40 per share and has a dividend yield of 3.5%. MGM Growth Properties pays an annual dividend of $1.88 per share and has a dividend yield of 6.2%. Store Capital pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MGM Growth Properties pays out 84.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

90.5% of Store Capital shares are owned by institutional investors. Comparatively, 95.9% of MGM Growth Properties shares are owned by institutional investors. 0.8% of Store Capital shares are owned by company insiders. Comparatively, 0.5% of MGM Growth Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Store Capital and MGM Growth Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Store Capital 44.09% 6.92% 3.74%
MGM Growth Properties 8.24% 1.31% 0.70%

Summary

Store Capital beats MGM Growth Properties on 9 of the 15 factors compared between the two stocks.

About Store Capital

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.

About MGM Growth Properties

MGM Growth Properties LLC (NYSE:MGP) is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. MGP currently owns a portfolio of properties, consisting of 11 premier destination resorts in Las Vegas and elsewhere across the United States, the Hard Rock Rocksino Northfield Park in Northfield, OH, Empire Resort Casino in Yonkers, NY, as well as a retail and entertainment district, The Park in Las Vegas. As of December 31, 2018, our destination resorts, the Park, and Northfield Park collectively comprise approximately 27,500 hotel rooms, 2.7 million convention square footage, 150 retail outlets, 300 food and beverage outlets and 20 entertainment venues. As a growth-oriented public real estate entity, MGP expects its relationship with MGM Resorts and other entertainment providers to attractively position MGP for the acquisition of additional properties across the entertainment, hospitality and leisure industries.

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