Weyerhaeuser (NYSE:WY) and Millrose Properties (NYSE:MRP) Head to Head Review

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

Valuation & Earnings

This table compares Weyerhaeuser and Millrose Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weyerhaeuser	$6.91 billion	2.04	$324.00 million	$0.65	30.11
Millrose Properties	$600.46 million	6.14	$379.86 million	$2.87	8.33

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

Risk & Volatility

Weyerhaeuser has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Dividends

Weyerhaeuser pays an annual dividend of $0.84 per share and has a dividend yield of 4.3%. Millrose Properties pays an annual dividend of $3.16 per share and has a dividend yield of 13.2%. 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. Millrose Properties pays out 110.1% 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 has increased its dividend for 3 consecutive years. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

83.0% of Weyerhaeuser shares are held by institutional investors. 0.3% of Weyerhaeuser shares are held by insiders. Comparatively, 0.2% of Millrose Properties shares are held 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 recent ratings and recommmendations for Weyerhaeuser and Millrose Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weyerhaeuser	0	3	7	1	2.82
Millrose Properties	0	3	0	1	2.50

Weyerhaeuser currently has a consensus target price of $26.67, suggesting a potential upside of 36.24%. Millrose Properties has a consensus target price of $36.50, suggesting a potential upside of 52.69%. Given Millrose Properties’ higher probable upside, analysts clearly believe Millrose Properties is more favorable than Weyerhaeuser.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weyerhaeuser	6.89%	1.49%	0.85%
Millrose Properties	62.60%	8.13%	5.07%

Summary

Millrose Properties beats Weyerhaeuser on 9 of the 17 factors compared between the two stocks.

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.

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.