Analyzing FrontView REIT (NYSE:FVR) & Terreno Realty (NYSE:TRNO)

FrontView REIT (NYSE:FVR) and Terreno Realty (NYSE:TRNO) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for FrontView REIT and Terreno Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FrontView REIT	1	3	4	2	2.70
Terreno Realty	2	2	8	1	2.62

FrontView REIT currently has a consensus target price of $19.19, indicating a potential downside of 1.82%. Terreno Realty has a consensus target price of $69.21, indicating a potential upside of 7.60%. Given Terreno Realty’s higher probable upside, analysts plainly believe Terreno Realty is more favorable than FrontView REIT.

Earnings and Valuation

This table compares FrontView REIT and Terreno Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FrontView REIT	$67.11 million	6.60	-$3.83 million	($0.16)	-122.15
Terreno Realty	$490.40 million	13.94	$402.99 million	$4.09	15.73

Terreno Realty has higher revenue and earnings than FrontView REIT. FrontView REIT is trading at a lower price-to-earnings ratio than Terreno Realty, indicating that it is currently the more affordable of the two stocks.

Dividends

FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.4%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.2%. FrontView REIT pays out -537.5% of its earnings in the form of a dividend. Terreno Realty pays out 50.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Terreno Realty has raised its dividend for 5 consecutive years. FrontView REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares FrontView REIT and Terreno Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FrontView REIT	-3.88%	-0.53%	-0.31%
Terreno Realty	86.44%	10.35%	7.98%

Volatility & Risk

FrontView REIT has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

Terreno Realty beats FrontView REIT on 11 of the 16 factors compared between the two stocks.

About FrontView REIT

FrontView REIT specializes in real estate investing.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.