Critical Contrast: Stratus Properties (STRS) versus The Competition

Stratus Properties (NASDAQ:STRS) is one of 329 publicly-traded companies in the “Real Estate Management & Development” industry, but how does it contrast to its competitors? We will compare Stratus Properties to similar companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, dividends, valuation and risk.

Institutional and Insider Ownership

61.6% of Stratus Properties shares are held by institutional investors. Comparatively, 32.4% of shares of all “Real Estate Management & Development” companies are held by institutional investors. 10.0% of Stratus Properties shares are held by insiders. Comparatively, 27.1% of shares of all “Real Estate Management & Development” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Stratus Properties and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stratus Properties	74.96%	6.28%	3.83%
Stratus Properties Competitors	-426.28%	-1,119.00%	-1.43%

Earnings & Valuation

This table compares Stratus Properties and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Stratus Properties	$28.66 million	$11.98 million	6.69
Stratus Properties Competitors	$2.82 billion	-$961.71 million	10.09

Stratus Properties’ competitors have higher revenue, but lower earnings than Stratus Properties. Stratus Properties is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Stratus Properties and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratus Properties	1	0	0	0	1.00
Stratus Properties Competitors	1574	4680	7432	207	2.45

As a group, “Real Estate Management & Development” companies have a potential upside of 28.16%. Given Stratus Properties’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Stratus Properties has less favorable growth aspects than its competitors.

Volatility and Risk

Stratus Properties has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Stratus Properties’ competitors have a beta of 0.79, suggesting that their average share price is 21% less volatile than the S&P 500.

Summary

Stratus Properties competitors beat Stratus Properties on 7 of the 13 factors compared.

Stratus Properties Company Profile

Stratus Properties Inc., a real estate company, engages in the entitlement, development, management, leasing, and sale of multi and single family residential and commercial real estate properties in the Austin, Texas area and other select markets in Texas. The company operates in two segments, Real Estate Operations and Leasing Operations. Its leasing operations cover lease of space at retail and mixed-use and multi-family properties. The company was incorporated in 1992 and is headquartered in Austin, Texas.