Comparing Millrose Properties (NYSE:MRP) and Weyerhaeuser (NYSE:WY)

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

Profitability

This table compares Millrose Properties and Weyerhaeuser’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Millrose Properties	63.24%	8.56%	5.13%
Weyerhaeuser	6.47%	1.72%	0.98%

Institutional and Insider Ownership

83.0% of Weyerhaeuser shares are owned by institutional investors. 0.2% of Millrose Properties shares are owned by insiders. Comparatively, 0.3% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Millrose Properties and Weyerhaeuser”s 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	6.57	$379.86 million	$3.02	8.47
Weyerhaeuser	$6.91 billion	2.13	$324.00 million	$0.62	32.90

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

Volatility & Risk

Millrose Properties has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Millrose Properties and Weyerhaeuser, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millrose Properties	0	3	0	1	2.50
Weyerhaeuser	0	3	8	1	2.83

Millrose Properties currently has a consensus price target of $35.00, indicating a potential upside of 36.83%. Weyerhaeuser has a consensus price target of $26.00, indicating a potential upside of 27.45%. Given Millrose Properties’ higher possible upside, equities analysts clearly believe Millrose Properties is more favorable than Weyerhaeuser.

Dividends

Millrose Properties pays an annual dividend of $3.16 per share and has a dividend yield of 12.4%. Weyerhaeuser pays an annual dividend of $0.84 per share and has a dividend yield of 4.1%. Millrose Properties pays out 104.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser pays out 135.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser has raised its dividend for 3 consecutive years. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Millrose Properties beats Weyerhaeuser on 9 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 Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.