Critical Comparison: Four Corners Property Trust (NYSE:FCPT) vs. Millrose Properties (NYSE:MRP)

Four Corners Property Trust (NYSE:FCPT) and Millrose Properties (NYSE:MRP) are both mid-cap real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Four Corners Property Trust and Millrose Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Corners Property Trust	0	5	5	0	2.50
Millrose Properties	0	0	3	1	3.25

Four Corners Property Trust currently has a consensus price target of $27.78, indicating a potential upside of 9.97%. Millrose Properties has a consensus price target of $37.67, indicating a potential upside of 23.78%. Given Millrose Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Millrose Properties is more favorable than Four Corners Property Trust.

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%

Dividends

Four Corners Property Trust pays an annual dividend of $1.46 per share and has a dividend yield of 5.8%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.1%. 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 increased its dividend for 5 consecutive years. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

98.7% of Four Corners Property Trust shares are held by institutional investors. 1.2% of Four Corners Property Trust shares are held by insiders. Comparatively, 0.2% of Millrose Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Four Corners Property Trust has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Valuation and Earnings

This table compares Four Corners Property Trust and Millrose Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$306.40 million	9.05	$112.36 million	$1.11	22.76
Millrose Properties	$600.46 million	7.82	$379.86 million	$2.87	10.60

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.

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.