Financial Survey: Farmland Partners (NYSE:FPI) and Millrose Properties (NYSE:MRP)

Farmland Partners (NYSE:FPI) and Millrose Properties (NYSE:MRP) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Dividends

Farmland Partners pays an annual dividend of $0.36 per share and has a dividend yield of 3.6%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.3%. Farmland Partners pays out 70.6% of its earnings in the form of a dividend. Millrose Properties pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Farmland Partners and Millrose Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmland Partners	49.85%	5.54%	3.58%
Millrose Properties	62.60%	8.13%	5.07%

Earnings & Valuation

This table compares Farmland Partners and Millrose Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmland Partners	$51.47 million	8.46	$31.55 million	$0.51	19.57
Millrose Properties	$760.54 million	6.08	$379.86 million	$2.87	10.44

Millrose Properties has higher revenue and earnings than Farmland Partners. Millrose Properties is trading at a lower price-to-earnings ratio than Farmland Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Farmland Partners and Millrose Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmland Partners	0	4	0	0	2.00
Millrose Properties	0	1	2	1	3.00

Millrose Properties has a consensus price target of $37.67, indicating a potential upside of 25.65%. Given Millrose Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Millrose Properties is more favorable than Farmland Partners.

Volatility and Risk

Farmland Partners has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Insider & Institutional Ownership

58.0% of Farmland Partners shares are owned by institutional investors. 7.9% of Farmland Partners shares are owned by company insiders. Comparatively, 0.2% of Millrose Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Millrose Properties beats Farmland Partners on 11 of the 17 factors compared between the two stocks.

About Farmland Partners

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014.

About Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.