Financial Contrast: STORE Capital (NYSE:STOR) and Centerspace (NYSE:CSR)

STORE Capital (NYSE:STORGet Rating) and Centerspace (NYSE:CSRGet Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for STORE Capital and Centerspace, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STORE Capital 1 4 1 0 2.00
Centerspace 0 4 5 0 2.56

STORE Capital currently has a consensus target price of $32.83, suggesting a potential upside of 24.32%. Centerspace has a consensus target price of $105.25, suggesting a potential upside of 28.62%. Given Centerspace’s stronger consensus rating and higher probable upside, analysts plainly believe Centerspace is more favorable than STORE Capital.

Valuation & Earnings

This table compares STORE Capital and Centerspace’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
STORE Capital $782.66 million 9.47 $268.35 million $1.11 23.79
Centerspace $201.71 million 6.23 $610,000.00 ($0.62) -131.98

STORE Capital has higher revenue and earnings than Centerspace. Centerspace is trading at a lower price-to-earnings ratio than STORE Capital, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.0% of STORE Capital shares are owned by institutional investors. Comparatively, 80.7% of Centerspace shares are owned by institutional investors. 0.9% of STORE Capital shares are owned by company insiders. Comparatively, 0.9% of Centerspace shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

STORE Capital has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Dividends

STORE Capital pays an annual dividend of $1.54 per share and has a dividend yield of 5.8%. Centerspace pays an annual dividend of $2.92 per share and has a dividend yield of 3.6%. STORE Capital pays out 138.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Centerspace pays out -471.0% of its earnings in the form of a dividend. STORE Capital has raised its dividend for 7 consecutive years. STORE Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares STORE Capital and Centerspace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STORE Capital 36.52% 5.65% 3.02%
Centerspace -1.74% -0.45% -0.21%

Summary

STORE Capital beats Centerspace on 13 of the 17 factors compared between the two stocks.

STORE Capital Company Profile (Get Rating)

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 more than 2,500 property locations across the United States, substantially all of which are profit centers.

Centerspace Company Profile (Get Rating)

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of June 30, 2021, Centerspace owned 62 apartment communities consisting of 11,579 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for 2021 by the Minneapolis Star Tribune. For more information, please visit www.centerspacehomes.com.

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