Reviewing Four Corners Property Trust (NYSE:FCPT) and Rithm Capital (NYSE:RITM)

Four Corners Property Trust (NYSE:FCPT) and Rithm Capital (NYSE:RITM) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Dividends

Four Corners Property Trust pays an annual dividend of $1.38 per share and has a dividend yield of 5.1%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.0%. Four Corners Property Trust pays out 129.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rithm Capital pays out 66.7% of its earnings in the form of a dividend. Rithm Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Four Corners Property Trust and Rithm Capital’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$262.91 million	9.48	$95.34 million	$1.07	25.33
Rithm Capital	$2.47 billion	2.18	$622.26 million	$1.50	7.45

Rithm Capital has higher revenue and earnings than Four Corners Property Trust. Rithm Capital 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.

Analyst Ratings

This is a summary of current ratings for Four Corners Property Trust and Rithm Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Corners Property Trust	0	1	1	1	3.00
Rithm Capital	0	1	9	0	2.90

Four Corners Property Trust presently has a consensus price target of $26.33, indicating a potential downside of 2.83%. Rithm Capital has a consensus price target of $12.55, indicating a potential upside of 12.31%. Given Rithm Capital’s higher possible upside, analysts clearly believe Rithm Capital is more favorable than Four Corners Property Trust.

Volatility and Risk

Four Corners Property Trust has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Institutional & Insider Ownership

98.7% of Four Corners Property Trust shares are held by institutional investors. Comparatively, 44.9% of Rithm Capital shares are held by institutional investors. 1.2% of Four Corners Property Trust shares are held by company insiders. Comparatively, 0.4% of Rithm Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Four Corners Property Trust and Rithm Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Four Corners Property Trust	37.01%	7.72%	3.95%
Rithm Capital	15.55%	18.20%	2.89%

Summary

Rithm Capital beats Four Corners Property Trust on 9 of the 17 factors compared between the two stocks.

About Four Corners Property Trust

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail 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.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.