Farmland Partners (NYSE:FPI) versus InvenTrust Properties (NYSE:IVT) Head-To-Head Contrast

InvenTrust Properties (NYSE:IVT) and Farmland Partners (NYSE:FPI) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares InvenTrust Properties and Farmland Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InvenTrust Properties	37.24%	6.22%	4.11%
Farmland Partners	60.46%	6.67%	4.14%

Risk & Volatility

InvenTrust Properties has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Farmland Partners has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for InvenTrust Properties and Farmland Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	3	4	0	2.57
Farmland Partners	0	2	0	0	2.00

InvenTrust Properties currently has a consensus target price of $31.60, suggesting a potential upside of 1.15%. Given InvenTrust Properties’ stronger consensus rating and higher probable upside, equities research analysts clearly believe InvenTrust Properties is more favorable than Farmland Partners.

Institutional and Insider Ownership

61.7% of InvenTrust Properties shares are held by institutional investors. Comparatively, 58.0% of Farmland Partners shares are held by institutional investors. 0.6% of InvenTrust Properties shares are held by insiders. Comparatively, 7.7% of Farmland Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares InvenTrust Properties and Farmland Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$299.17 million	8.11	$111.42 million	$1.43	21.85
Farmland Partners	$52.18 million	10.83	$31.55 million	$0.60	21.63

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

Dividends

InvenTrust Properties pays an annual dividend of $0.95 per share and has a dividend yield of 3.0%. Farmland Partners pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. InvenTrust Properties pays out 66.4% of its earnings in the form of a dividend. Farmland Partners pays out 40.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. InvenTrust Properties has raised its dividend for 4 consecutive years. InvenTrust Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

InvenTrust Properties beats Farmland Partners on 11 of the 17 factors compared between the two stocks.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

About Farmland Partners

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 December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has 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.