Critical Review: Rayonier (NYSE:RYN) & EPR Properties (NYSE:EPR)

EPR Properties (NYSE:EPR) and Rayonier (NYSE:RYN) are both mid-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$699.01 million	6.63	$274.94 million	$3.11	19.44
Rayonier	$484.50 million	13.43	$474.38 million	$0.45	48.08

Rayonier has lower revenue, but higher earnings than EPR Properties. EPR Properties is trading at a lower price-to-earnings ratio than Rayonier, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

EPR Properties has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Rayonier has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares EPR Properties and Rayonier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EPR Properties	35.45%	11.34%	4.58%
Rayonier	7.83%	3.49%	2.37%

Dividends

EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.2%. Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. EPR Properties pays out 119.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rayonier pays out 231.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for EPR Properties and Rayonier, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	0	5	8	0	2.62
Rayonier	1	4	0	1	2.17

EPR Properties presently has a consensus price target of $64.39, suggesting a potential upside of 6.50%. Rayonier has a consensus price target of $24.80, suggesting a potential upside of 14.63%. Given Rayonier’s higher probable upside, analysts plainly believe Rayonier is more favorable than EPR Properties.

Insider & Institutional Ownership

74.7% of EPR Properties shares are owned by institutional investors. Comparatively, 89.1% of Rayonier shares are owned by institutional investors. 0.0% of EPR Properties shares are owned by insiders. Comparatively, 0.9% of Rayonier shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

EPR Properties beats Rayonier on 11 of the 18 factors compared between the two stocks.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).