Essential Properties Realty Trust (NYSE:EPRT – Get Free Report) and Franklin BSP Realty Trust (NYSE:FBRT – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Analyst Recommendations
This is a summary of current ratings for Essential Properties Realty Trust and Franklin BSP Realty Trust, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Essential Properties Realty Trust | 0 | 2 | 11 | 0 | 2.85 |
Franklin BSP Realty Trust | 0 | 0 | 3 | 1 | 3.25 |
Essential Properties Realty Trust currently has a consensus target price of $33.06, indicating a potential upside of 1.40%. Franklin BSP Realty Trust has a consensus target price of $15.38, indicating a potential upside of 18.91%. Given Franklin BSP Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Franklin BSP Realty Trust is more favorable than Essential Properties Realty Trust.
Dividends
Institutional and Insider Ownership
97.0% of Essential Properties Realty Trust shares are held by institutional investors. Comparatively, 59.9% of Franklin BSP Realty Trust shares are held by institutional investors. 0.8% of Essential Properties Realty Trust shares are held by company insiders. Comparatively, 0.7% of Franklin BSP Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Essential Properties Realty Trust and Franklin BSP Realty Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Essential Properties Realty Trust | 48.12% | 6.28% | 3.96% |
Franklin BSP Realty Trust | 43.03% | 11.96% | 2.62% |
Valuation and Earnings
This table compares Essential Properties Realty Trust and Franklin BSP 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 | |
Essential Properties Realty Trust | $359.60 million | 15.89 | $190.71 million | $1.17 | 27.86 |
Franklin BSP Realty Trust | $549.24 million | 1.93 | $145.21 million | $1.32 | 9.80 |
Essential Properties Realty Trust has higher earnings, but lower revenue than Franklin BSP Realty Trust. Franklin BSP Realty Trust is trading at a lower price-to-earnings ratio than Essential Properties Realty Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Essential Properties Realty Trust has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Franklin BSP Realty Trust has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
Summary
Essential Properties Realty Trust beats Franklin BSP Realty Trust on 9 of the 17 factors compared between the two stocks.
About Essential Properties Realty Trust
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. 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 founded in 2016 and is headquartered in Princeton, New Jersey.
About Franklin BSP Realty Trust
Benefit Street Partners operates as a self-managed real estate investment trust (REIT). BSP earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the government-sponsored enterprises (GSEs)), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae). BSP’s investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of ARM Agency Securities. As of December 31, 2012, the Company’s securities consisted of Agency Securities classified as available-for-sale and Residential mortgage securities classified as held-to-maturity.
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