Farmland Partners (FPI) & Its Peers Critical Contrast
Farmland Partners (NYSE: FPI) is one of 16 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its competitors? We will compare Farmland Partners to related businesses based on the strength of its valuation, institutional ownership, risk, profitability, dividends, analyst recommendations and earnings.
This is a summary of current ratings for Farmland Partners and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Farmland Partners Competitors||85||317||588||24||2.54|
Farmland Partners currently has a consensus target price of $10.13, indicating a potential upside of 11.88%. As a group, “Specialized REITs” companies have a potential upside of 14.94%. Given Farmland Partners’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Farmland Partners has less favorable growth aspects than its competitors.
Valuation and Earnings
This table compares Farmland Partners and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Farmland Partners||$38.89 million||$24.04 million||75.42|
|Farmland Partners Competitors||$1.00 billion||$531.02 million||26.72|
Farmland Partners’ competitors have higher revenue and earnings than Farmland Partners. Farmland Partners is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Farmland Partners pays an annual dividend of $0.51 per share and has a dividend yield of 5.6%. Farmland Partners pays out 425.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 4.2% and pay out 169.6% of their earnings in the form of a dividend. Farmland Partners has increased its dividend for 2 consecutive years.
Insider & Institutional Ownership
39.8% of Farmland Partners shares are owned by institutional investors. Comparatively, 64.9% of shares of all “Specialized REITs” companies are owned by institutional investors. 2.8% of Farmland Partners shares are owned by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Farmland Partners has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Farmland Partners’ competitors have a beta of 0.85, meaning that their average share price is 15% less volatile than the S&P 500.
This table compares Farmland Partners and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Farmland Partners Competitors||34.60%||8.74%||3.15%|
Farmland Partners competitors beat Farmland Partners on 13 of the 15 factors compared.
About Farmland Partners
Farmland Partners, Inc. is an internally managed real estate company. The Company owns and seeks to acquire farmland located in agricultural markets throughout North America. The Company is the sole member of the general partner of Farmland Partners Operating Partnership, LP (the Operating Partnership). All of the Company’s assets are held by, and its operations are primarily conducted through, the Operating Partnership and the subsidiaries of the Operating Partnership. The Company’s principal investment focus is on farmland located in agricultural markets throughout North America, however, it may seek to acquire farmland outside of North America. It also may acquire properties related to farming, such as grain storage facilities, grain elevators, feedlots, cold storage facilities, processing plants and distribution centers, as well as livestock farms or ranches. As of December 31, 2016, the Company owned approximately 115,489 acres, as well as eight grain storage facilities.
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