Farmland Partners (NYSE:FPI) versus Clipper Realty (NYSE:CLPR) Head-To-Head Contrast

Clipper Realty (NYSE:CLPR) and Farmland Partners (NYSE:FPI) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Insider & Institutional Ownership

37.6% of Clipper Realty shares are held by institutional investors. Comparatively, 58.0% of Farmland Partners shares are held by institutional investors. 53.0% of Clipper Realty shares are held by company insiders. Comparatively, 7.7% of Farmland Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Clipper Realty and Farmland Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clipper Realty	-10.40%	N/A	-1.28%
Farmland Partners	130.10%	14.37%	8.62%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clipper Realty	$148.77 million	0.37	-$2.50 million	($1.12)	-3.07
Farmland Partners	$58.23 million	7.52	$59.91 million	$1.20	8.47

Farmland Partners has lower revenue, but higher earnings than Clipper Realty. Clipper Realty 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

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 11.1%. Farmland Partners pays an annual dividend of $0.24 per share and has a dividend yield of 2.4%. Clipper Realty pays out -33.9% of its earnings in the form of a dividend. Farmland Partners pays out 20.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Clipper Realty has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Farmland Partners has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Clipper Realty and Farmland Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clipper Realty	0	1	0	0	2.00
Farmland Partners	0	1	0	0	2.00

Summary

Farmland Partners beats Clipper Realty on 8 of the 13 factors compared between the two stocks.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.

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.