Brookfield Property Partners (NASDAQ: BPY) and Stratus Properties (NASDAQ:STRS) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
This table compares Brookfield Property Partners and Stratus Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Property Partners||12.89%||1.85%||0.77%|
This table compares Brookfield Property Partners and Stratus Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Property Partners||$5.84 billion||0.90||$136.00 million||$0.49||42.04|
|Stratus Properties||$80.34 million||3.19||-$5.99 million||$1.29||24.46|
Brookfield Property Partners has higher revenue and earnings than Stratus Properties. Stratus Properties is trading at a lower price-to-earnings ratio than Brookfield Property Partners, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
62.5% of Brookfield Property Partners shares are owned by institutional investors. Comparatively, 54.7% of Stratus Properties shares are owned by institutional investors. 7.0% of Stratus Properties shares are owned by 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.
Brookfield Property Partners pays an annual dividend of $1.26 per share and has a dividend yield of 6.1%. Stratus Properties does not pay a dividend. Brookfield Property Partners pays out 257.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings and recommmendations for Brookfield Property Partners and Stratus Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Property Partners||0||2||2||0||2.50|
Brookfield Property Partners currently has a consensus price target of $25.00, suggesting a potential upside of 21.36%. Given Brookfield Property Partners’ higher probable upside, research analysts plainly believe Brookfield Property Partners is more favorable than Stratus Properties.
Volatility & Risk
Brookfield Property Partners has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Stratus Properties has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.
Brookfield Property Partners beats Stratus Properties on 9 of the 15 factors compared between the two stocks.
About Brookfield Property Partners
Brookfield Property Partners L.P. is a diversified global real estate company. The Company owns, operates and develops a portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage and student housing assets. Its partnership is Brookfield Asset Management Inc.’s public commercial property entity and the primary vehicle through which it invests in real estate on a global basis. It operates through four segments: Core Office, Core Retail, Opportunistic and Corporate. As of December 31, 2016, its Core Office segment consisted of interests in 142 office properties totaling 99 million square feet. As of December 31, 2016, its Core Retail segment consisted of interests in 127 regional malls and urban retail properties. As of December 31, 2016, its Opportunistic segment consisted of 107 office properties comprising approximately 29 million square feet of office space in the United States, United Kingdom, Brazil and Asia.
About Stratus Properties
Stratus Properties Inc. (Stratus) is a diversified real estate company. The Company is engaged primarily in the acquisition, entitlement, development, management, operation and sale of commercial, hotel, entertainment, and multi- and single-family residential real estate properties, primarily located in the Austin, Texas area, but including projects in certain other select markets in Texas. It operates in four segments: Hotel, Entertainment, Real Estate Operations and Commercial Leasing. Its properties include Barton Creek that includes Calera, Amarra Drive, Mirador Estate and Barton Creek Village; Circle C Community; Lantana; The Oaks at Lakeway and Magnolia. The Hotel segment includes the W Austin Hotel, which has over 251 luxury rooms and suites, a full service spa, gym, rooftop pool and over 9,750 square feet of meeting space. The Commercial Leasing segment includes the office and retail space at the W Austin Hotel & Residences project and a retail building at The Oaks at Lakeway.
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