Critical Analysis: Millrose Properties (NYSE:MRP) versus Stratus Properties (NASDAQ:STRS)

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

Insider and Institutional Ownership

61.6% of Stratus Properties shares are owned by institutional investors. 10.0% of Stratus Properties shares are owned by insiders. Comparatively, 0.2% of Millrose Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Stratus Properties has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Earnings & Valuation

This table compares Stratus Properties and Millrose Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stratus Properties	$29.91 million	7.59	$11.98 million	$2.64	10.78
Millrose Properties	$600.46 million	7.24	$379.86 million	$2.79	10.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stratus Properties	74.96%	6.28%	3.83%
Millrose Properties	64.96%	7.90%	5.17%

Analyst Recommendations

This is a summary of current ratings for Stratus Properties and Millrose Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratus Properties	0	1	0	0	2.00
Millrose Properties	0	1	2	1	3.00

Millrose Properties has a consensus target price of $37.67, indicating a potential upside of 33.68%. Given Millrose Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Millrose Properties is more favorable than Stratus Properties.

Summary

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

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.

About Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.