Head-To-Head Review: Brookfield (NYSE:BN) vs. Stratus Properties (NASDAQ:STRS)

Brookfield (NYSE:BN) and Stratus Properties (NASDAQ:STRS) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Brookfield and Stratus Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield	0	2	12	1	2.93
Stratus Properties	0	1	0	0	2.00

Brookfield currently has a consensus target price of $56.82, indicating a potential upside of 23.29%. Given Brookfield’s stronger consensus rating and higher probable upside, equities analysts plainly believe Brookfield is more favorable than Stratus Properties.

Volatility & Risk

Brookfield has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Stratus Properties has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Insider and Institutional Ownership

61.6% of Brookfield shares are held by institutional investors. Comparatively, 61.6% of Stratus Properties shares are held by institutional investors. 11.0% of Brookfield shares are held by company insiders. Comparatively, 10.0% of Stratus Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Brookfield and Stratus Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield	$75.10 billion	1.50	$1.31 billion	$0.51	90.36
Stratus Properties	$29.91 million	7.74	$11.98 million	$2.64	10.99

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookfield	1.76%	3.86%	1.20%
Stratus Properties	74.96%	6.28%	3.83%

Summary

Brookfield beats Stratus Properties on 9 of the 15 factors compared between the two stocks.

About Brookfield

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It typically makes investments in sizeable, premier assets across geographies and asset classes. It invests both its own capital as well as capital from other investors. Within private equity and venture capital, it focuses on acquisition, early ventures, control buyouts and financially distressed, buyouts and corporate carve-outs, recapitalizations, convertible, senior and mezzanine financings, operational and capital structure restructuring, strategic re-direction, turnaround, and under-performing midmarket companies. It invests in both public debt and equity markets. It invests in private equity sectors with focus on Business Services include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate; Industrials include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development; and Residential/ infrastructure services. It targets companies which likely possess underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors. It invests globally with focus on North America including Brazil, the United States, Canada; Europe; and Australia; and Asia-Pacific. The firm considers equity investments in the range of $2 million to $500 million. It has a four-year investment period and a 10-year term with two one-year extensions. The firm prefers to take minority stake and majority stake. Brookfield Corporation was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.

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.