Analyzing Farmland Partners (FPI) and DDR (DDR)

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

Profitability

This table compares Farmland Partners and DDR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmland Partners 20.85% 2.98% 0.91%
DDR N/A N/A N/A

Analyst Ratings

This is a summary of current ratings and price targets for Farmland Partners and DDR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmland Partners 0 2 1 0 2.33
DDR 2 13 1 0 1.94

Farmland Partners currently has a consensus target price of $8.25, suggesting a potential upside of 24.81%. DDR has a consensus target price of $15.19, suggesting a potential upside of 26.67%. Given DDR’s higher probable upside, analysts clearly believe DDR is more favorable than Farmland Partners.

Institutional and Insider Ownership

49.3% of Farmland Partners shares are owned by institutional investors. Comparatively, 81.8% of DDR shares are owned by institutional investors. 2.8% of Farmland Partners shares are owned by insiders. Comparatively, 17.6% of DDR shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Farmland Partners and DDR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farmland Partners $46.22 million 4.46 $7.91 million $0.36 18.36
DDR N/A N/A N/A N/A N/A

Farmland Partners has higher revenue and earnings than DDR.

Dividends

Farmland Partners pays an annual dividend of $0.20 per share and has a dividend yield of 3.0%. DDR pays an annual dividend of $0.80 per share and has a dividend yield of 6.7%. Farmland Partners pays out 55.6% of its earnings in the form of a dividend. DDR has increased its dividend for 7 consecutive years. DDR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

DDR beats Farmland Partners on 6 of the 11 factors compared between the two stocks.

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 the date of this release, the Company owns over 165,000 acres in 17 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota, Texas and Virginia. We have approximately 30 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.

About DDR

DDR is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR.

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