Critical Analysis: Brookfield Property Partners (BPY) versus Stratus Properties (STRS)

Stratus Properties (NASDAQ: STRS) and Brookfield Property Partners (NASDAQ:BPY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Valuation and Earnings

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This table compares Stratus Properties and Brookfield Property Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stratus Properties $80.34 million 3.02 $3.87 million N/A N/A
Brookfield Property Partners $5.84 billion 0.83 $136.00 million N/A N/A

Brookfield Property Partners has higher revenue and earnings than Stratus Properties.

Risk and Volatility

Stratus Properties has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Brookfield Property Partners has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Profitability

This table compares Stratus Properties and Brookfield Property Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stratus Properties 4.83% -8.47% -2.63%
Brookfield Property Partners 12.89% 1.85% 0.77%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Stratus Properties and Brookfield Property Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stratus Properties 0 0 1 0 3.00
Brookfield Property Partners 0 1 4 0 2.80

Brookfield Property Partners has a consensus price target of $24.50, indicating a potential upside of 29.29%. Given Brookfield Property Partners’ higher possible upside, analysts clearly believe Brookfield Property Partners is more favorable than Stratus Properties.

Insider & Institutional Ownership

54.7% of Stratus Properties shares are owned by institutional investors. Comparatively, 61.9% of Brookfield Property Partners shares are owned by institutional investors. 7.0% of Stratus 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.

Dividends

Brookfield Property Partners pays an annual dividend of $1.26 per share and has a dividend yield of 6.6%. Stratus Properties does not pay a dividend.

Summary

Brookfield Property Partners beats Stratus Properties on 10 of the 13 factors compared between the two stocks.

Stratus Properties Company Profile

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.

Brookfield Property Partners Company Profile

Brookfield Property Partners is one of the world's largest commercial real estate companies, with approximately $68 billion in total assets. We are leading owners, operators and investors in commercial real estate, with a diversified portfolio of premier office and retail assets, as well as interests in multifamily, triple net lease, industrial, hospitality, self-storage, student housing and manufactured housing assets. Brookfield Property Partners is listed on the Nasdaq stock market and the Toronto stock exchange. Further information is available at bpy.brookfield.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Brookfield Property Partners is the flagship listed real estate company of Brookfield Asset Management, a leading global alternative asset manager with over $265 billion in assets under management.

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