Contrasting Millrose Properties (NYSE:MRP) & Farmland Partners (NYSE:FPI)

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

Risk & Volatility

Millrose Properties has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Farmland Partners has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millrose Properties	$600.46 million	7.84	$379.86 million	$2.87	10.64
Farmland Partners	$52.18 million	8.82	$31.55 million	$0.51	20.69

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.

Dividends

Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.1%. Farmland Partners pays an annual dividend of $0.36 per share and has a dividend yield of 3.4%. 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. Farmland Partners pays out 70.6% of its earnings in the form of a dividend.

Insider & Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Millrose Properties and Farmland Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millrose Properties	0	0	3	1	3.25
Farmland Partners	0	4	0	0	2.00

Millrose Properties currently has a consensus target price of $37.67, suggesting a potential upside of 23.38%. Given Millrose Properties’ stronger consensus rating and higher possible upside, research analysts plainly believe Millrose Properties is more favorable than Farmland Partners.

Summary

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

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.

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.