Analyzing Weyerhaeuser (NYSE:WY) and EPR Properties (NYSE:EPR)

EPR Properties (NYSE:EPR) and Weyerhaeuser (NYSE:WY) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares EPR Properties and Weyerhaeuser’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EPR Properties	35.45%	11.34%	4.58%
Weyerhaeuser	6.89%	1.49%	0.85%

Volatility and Risk

EPR Properties has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Dividends

EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.1%. Weyerhaeuser pays an annual dividend of $0.84 per share and has a dividend yield of 3.5%. EPR Properties pays out 119.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser pays out 129.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 1 consecutive years and Weyerhaeuser has raised its dividend for 3 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares EPR Properties and Weyerhaeuser”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$718.36 million	6.45	$274.94 million	$3.11	19.46
Weyerhaeuser	$6.91 billion	2.51	$324.00 million	$0.65	37.02

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

Insider and Institutional Ownership

74.7% of EPR Properties shares are owned by institutional investors. Comparatively, 83.0% of Weyerhaeuser shares are owned by institutional investors. 0.0% of EPR Properties shares are owned by insiders. Comparatively, 0.3% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for EPR Properties and Weyerhaeuser, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	0	5	8	0	2.62
Weyerhaeuser	0	4	6	1	2.73

EPR Properties presently has a consensus price target of $64.94, indicating a potential upside of 7.33%. Weyerhaeuser has a consensus price target of $29.00, indicating a potential upside of 20.53%. Given Weyerhaeuser’s stronger consensus rating and higher probable upside, analysts plainly believe Weyerhaeuser is more favorable than EPR Properties.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.