Head to Head Contrast: STORE Capital (NYSE:STOR) vs. Physicians Realty Trust (NYSE:DOC)

STORE Capital (NYSE:STOR) and Physicians Realty Trust (NYSE:DOC) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for STORE Capital and Physicians Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STORE Capital 0 6 1 0 2.14
Physicians Realty Trust 0 4 3 0 2.43

STORE Capital currently has a consensus target price of $35.67, suggesting a potential upside of 4.14%. Physicians Realty Trust has a consensus target price of $20.20, suggesting a potential upside of 10.68%. Given Physicians Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Physicians Realty Trust is more favorable than STORE Capital.

Dividends

STORE Capital pays an annual dividend of $1.44 per share and has a dividend yield of 4.2%. Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 5.0%. STORE Capital pays out 78.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Physicians Realty Trust pays out 87.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. STORE Capital has increased its dividend for 6 consecutive years and Physicians Realty Trust has increased its dividend for 1 consecutive years.

Insider & Institutional Ownership

85.6% of STORE Capital shares are held by institutional investors. Comparatively, 86.6% of Physicians Realty Trust shares are held by institutional investors. 0.9% of STORE Capital shares are held by company insiders. Comparatively, 0.8% of Physicians Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
STORE Capital 31.39% 4.60% 2.56%
Physicians Realty Trust 15.47% 2.53% 1.58%

Valuation & Earnings

This table compares STORE Capital and Physicians Realty Trust’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 $694.27 million 13.34 $212.61 million $1.83 18.72
Physicians Realty Trust $437.51 million 9.07 $66.12 million $1.05 17.38

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

Risk & Volatility

STORE Capital has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Physicians Realty Trust has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Summary

STORE Capital beats Physicians Realty Trust on 11 of the 17 factors compared between the two stocks.

About STORE Capital

STORE Capital Corp. operates as an internally managed net-lease real estate investment trust. The firm engages in the acquisition, investment, management, and ownership of single tenant operational real estate properties. The company was founded by Mary Fedewa, Morton H. Fleischer, Christopher H. Volk, Catherine Long, Michael J. Zieg, and Michael T. Bennett on May 17, 2011 and is headquartered in Scottsdale, AZ.

About Physicians Realty Trust

Physicians Realty Trust is a real estate investment trust, which engages in the acquisition, development, owning, and managing of healthcare properties. Its principal investments include medical office buildings; outpatient treatment facilities; acute and post-acute care hospitals; as well as other real estate integral to healthcare providers. The company was founded by John W. Sweet, Jr. on April 9, 2013 and is headquartered in Milwaukee, WI.

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