Analyzing Strawberry Fields REIT (NASDAQ:STRW) & Franklin Street Properties (NYSE:FSP)

Strawberry Fields REIT (NASDAQ:STRW) and Franklin Street Properties (NYSE:FSP) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Strawberry Fields REIT and Franklin Street Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strawberry Fields REIT	0	1	1	2	3.25
Franklin Street Properties	0	0	0	0	0.00

Strawberry Fields REIT presently has a consensus target price of $12.55, indicating a potential upside of 8.10%. Given Strawberry Fields REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Strawberry Fields REIT is more favorable than Franklin Street Properties.

Risk & Volatility

Strawberry Fields REIT has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Franklin Street Properties has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

61.4% of Franklin Street Properties shares are held by institutional investors. 10.6% of Strawberry Fields REIT shares are held by insiders. Comparatively, 9.6% of Franklin Street Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Strawberry Fields REIT pays an annual dividend of $0.64 per share and has a dividend yield of 5.5%. Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 2.9%. Strawberry Fields REIT pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin Street Properties pays out -7.7% of its earnings in the form of a dividend. Strawberry Fields REIT has raised its dividend for 1 consecutive years. Strawberry Fields REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Strawberry Fields REIT and Franklin Street Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strawberry Fields REIT	2.98%	6.64%	0.52%
Franklin Street Properties	-43.90%	-7.79%	-5.30%

Earnings & Valuation

This table compares Strawberry Fields REIT and Franklin Street Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strawberry Fields REIT	$135.15 million	1.12	$2.50 million	$0.60	19.35
Franklin Street Properties	$111.88 million	1.30	-$52.72 million	($0.52)	-2.69

Strawberry Fields REIT has higher revenue and earnings than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than Strawberry Fields REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Strawberry Fields REIT beats Franklin Street Properties on 14 of the 18 factors compared between the two stocks.

About Strawberry Fields REIT

Strawberry Fields REIT, Inc. engages in the ownership, acquisition, development, and leasing of skilled nursing and certain other healthcare-related properties. The company was founded by Moishe Gubin in 2014 and is headquartered in South Bend, IN.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.