Reviewing Five Point (NYSE:FPH) & Stratus Properties (NASDAQ:STRS)

Five Point (NYSE:FPH) and Stratus Properties (NASDAQ:STRS) are both small-cap real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Institutional and Insider Ownership

38.1% of Five Point shares are owned by institutional investors. Comparatively, 61.6% of Stratus Properties shares are owned by institutional investors. 20.9% of Five Point shares are owned by company insiders. Comparatively, 10.0% of Stratus Properties shares are owned 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.

Risk & Volatility

Five Point has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Stratus Properties has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Earnings & Valuation

This table compares Five Point and Stratus Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five Point	$110.02 million	6.09	$70.97 million	$0.71	6.38
Stratus Properties	$28.66 million	5.02	$11.98 million	$2.64	6.81

Five Point has higher revenue and earnings than Stratus Properties. Five Point is trading at a lower price-to-earnings ratio than Stratus Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Five Point and Stratus Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Point	0	1	0	0	2.00
Stratus Properties	1	0	0	0	1.00

Profitability

This table compares Five Point and Stratus Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five Point	45.35%	2.29%	1.65%
Stratus Properties	74.96%	6.28%	3.83%

About Five Point

Five Point Holdings, LLC, through its subsidiary, Five Point Operating Company, LP, owns and develops mixed-use and planned communities in Orange County, Los Angeles County, and San Francisco County. The company operates in four segments: Valencia, San Francisco, Great Park, and Commercial. It sells residential and commercial land sites to homebuilders, commercial developers, and commercial buyers; operates and owns a commercial office, research and development, medical campus, and other properties; and provides development and property management services. The company was formerly known as Newhall Holding Company, LLC and changed its name to Five Point Holdings, LLC in May 2016. Five Point Holdings, LLC was incorporated in 2009 and is headquartered in Irvine, California.

About Stratus Properties

Stratus Properties Inc., a real estate company, engages in the entitlement, development, management, leasing, and sale of multi and single family residential and commercial real estate properties in the Austin, Texas area and other select markets in Texas. The company operates in two segments, Real Estate Operations and Leasing Operations. Its leasing operations cover lease of space at retail and mixed-use and multi-family properties. The company was incorporated in 1992 and is headquartered in Austin, Texas.