Farmland Partners (NYSE:FPI) and Rexford Industrial Realty (NYSE:REXR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.
Risk and Volatility
Farmland Partners has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.
Institutional & Insider Ownership
53.5% of Farmland Partners shares are owned by institutional investors. Comparatively, 98.9% of Rexford Industrial Realty shares are owned by institutional investors. 8.9% of Farmland Partners shares are owned by insiders. Comparatively, 1.5% of Rexford Industrial Realty 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.
Farmland Partners pays an annual dividend of $0.20 per share and has a dividend yield of 2.9%. Rexford Industrial Realty pays an annual dividend of $0.86 per share and has a dividend yield of 2.1%. Farmland Partners pays out 153.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 69.9% of its earnings in the form of a dividend. Rexford Industrial Realty has increased its dividend for 4 consecutive years.
This is a breakdown of current ratings for Farmland Partners and Rexford Industrial Realty, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rexford Industrial Realty||0||3||1||0||2.25|
Farmland Partners presently has a consensus target price of $7.00, indicating a potential upside of 2.04%. Rexford Industrial Realty has a consensus target price of $43.75, indicating a potential upside of 6.81%. Given Rexford Industrial Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Rexford Industrial Realty is more favorable than Farmland Partners.
This table compares Farmland Partners and Rexford Industrial Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rexford Industrial Realty||23.20%||2.82%||1.85%|
Valuation and Earnings
This table compares Farmland Partners and Rexford Industrial Realty’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Farmland Partners||$53.56 million||3.83||$13.89 million||$0.13||52.77|
|Rexford Industrial Realty||$267.21 million||17.83||$61.98 million||$1.23||33.30|
Rexford Industrial Realty has higher revenue and earnings than Farmland Partners. Rexford Industrial 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.
Rexford Industrial Realty beats Farmland Partners on 14 of the 17 factors compared between the two stocks.
Farmland Partners Company Profile
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 the date of this release, the Company owns approximately 162,000 acres in 17 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota, Texas and Virginia. We have 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.
Rexford Industrial Realty Company Profile
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 179 properties with approximately 22.1 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet.
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