Head-To-Head Survey: Millrose Properties (NYSE:MRP) vs. Rayonier (NYSE:RYN)

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

Institutional & Insider Ownership

89.1% of Rayonier shares are held by institutional investors. 0.9% of Rayonier shares are held by company insiders. Comparatively, 0.2% of Millrose Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rayonier	7.83%	3.49%	2.37%
Millrose Properties	62.60%	8.13%	5.07%

Valuation & Earnings

This table compares Rayonier and Millrose Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rayonier	$484.50 million	13.43	$474.38 million	$0.45	48.09
Millrose Properties	$600.46 million	7.41	$379.86 million	$2.87	10.05

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Rayonier and Millrose Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	1	4	0	1	2.17
Millrose Properties	0	1	2	1	3.00

Rayonier presently has a consensus target price of $24.80, suggesting a potential upside of 14.60%. Millrose Properties has a consensus target price of $37.67, suggesting a potential upside of 30.65%. Given Millrose Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Millrose Properties is more favorable than Rayonier.

Dividends

Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.7%. 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. 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. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Rayonier has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Summary

Millrose Properties beats Rayonier on 10 of the 16 factors compared between the two stocks.

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).

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.