Financial Analysis: Braemar Hotels & Resorts (NYSE:BHR) and Four Corners Property Trust (NYSE:FCPT)

Four Corners Property Trust (NYSE:FCPT) and Braemar Hotels & Resorts (NYSE:BHR) are both finance 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.

Profitability

This table compares Four Corners Property Trust and Braemar Hotels & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Four Corners Property Trust 45.45% 10.54% 4.99%
Braemar Hotels & Resorts -19.42% -17.78% -3.30%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Four Corners Property Trust and Braemar Hotels & Resorts, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Four Corners Property Trust 0 0 1 1 3.50
Braemar Hotels & Resorts 0 1 2 0 2.67

Four Corners Property Trust currently has a consensus price target of $31.50, indicating a potential upside of 15.38%. Braemar Hotels & Resorts has a consensus price target of $8.83, indicating a potential upside of 58.30%. Given Braemar Hotels & Resorts’ higher possible upside, analysts plainly believe Braemar Hotels & Resorts is more favorable than Four Corners Property Trust.

Valuation & Earnings

This table compares Four Corners Property Trust and Braemar Hotels & Resorts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Four Corners Property Trust $160.23 million 12.98 $72.62 million $1.39 19.64
Braemar Hotels & Resorts $487.61 million 0.55 $370,000.00 $1.41 3.96

Four Corners Property Trust has higher earnings, but lower revenue than Braemar Hotels & Resorts. Braemar Hotels & Resorts 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.

Institutional and Insider Ownership

89.7% of Four Corners Property Trust shares are owned by institutional investors. Comparatively, 30.0% of Braemar Hotels & Resorts shares are owned by institutional investors. 0.7% of Four Corners Property Trust shares are owned by insiders. Comparatively, 9.5% of Braemar Hotels & Resorts shares are owned 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.

Risk and Volatility

Four Corners Property Trust has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Braemar Hotels & Resorts has a beta of 3.05, meaning that its share price is 205% more volatile than the S&P 500.

Summary

Four Corners Property Trust beats Braemar Hotels & Resorts on 9 of the 15 factors compared between the two stocks.

Four Corners Property Trust Company Profile

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries.

Braemar Hotels & Resorts Company Profile

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).

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