Spirit Realty Capital (SRC) and AmBase (ABCP) Critical Contrast

Spirit Realty Capital (NYSE:SRC) and AmBase (OTCMKTS:ABCP) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Risk and Volatility

Spirit Realty Capital has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, AmBase has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Spirit Realty Capital and AmBase’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirit Realty Capital 20.95% 4.27% 2.00%
AmBase N/A -5.94% -5.05%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Spirit Realty Capital and AmBase, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit Realty Capital 2 4 3 0 2.11
AmBase 0 0 0 0 N/A

Spirit Realty Capital presently has a consensus target price of $8.55, suggesting a potential upside of 11.62%. Given Spirit Realty Capital’s higher probable upside, equities analysts plainly believe Spirit Realty Capital is more favorable than AmBase.

Institutional & Insider Ownership

91.4% of Spirit Realty Capital shares are held by institutional investors. 0.5% of Spirit Realty Capital shares are held by company insiders. Comparatively, 41.4% of AmBase shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Spirit Realty Capital and AmBase’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirit Realty Capital $668.96 million 4.91 $77.14 million $0.85 9.01
AmBase N/A N/A -$48.05 million N/A N/A

Spirit Realty Capital has higher revenue and earnings than AmBase.

Dividends

Spirit Realty Capital pays an annual dividend of $0.50 per share and has a dividend yield of 6.5%. AmBase does not pay a dividend. Spirit Realty Capital pays out 58.8% of its earnings in the form of a dividend. Spirit Realty Capital has raised its dividend for 3 consecutive years.

Summary

Spirit Realty Capital beats AmBase on 10 of the 13 factors compared between the two stocks.

Spirit Realty Capital Company Profile

Spirit Realty Capital, Inc. (NYSE: SRC) is a premier net-lease REIT that primarily invests in high-quality, operationally essential real estate, subject to long-term net leases. Over the past decade, Spirit has become an industry leader and owner of income-producing, strategically located retail, industrial, office and data center properties. As of September 30, 2018, our diversified portfolio was comprised of 1,523 properties, including properties securing mortgage loans made by the Company. Our properties, with an aggregate gross leasable area of approximately 28.7 million square feet, are leased to approximately 252 tenants across 49 states and 32 industries.

AmBase Company Profile

AmBase Corporation does not have significant operations. Previously, it invested in a real estate development property in New York, New York; and owned, operated, and managed a commercial office building. AmBase Corporation was incorporated in 1975 and is headquartered in Boca Raton, Florida.

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