Critical Survey: Farmland Partners (NYSE:FPI) and Washington Prime Group (NYSE:WPG.PI)

Farmland Partners (NYSE:FPI) and Washington Prime Group (NYSE:WPG.PI) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Farmland Partners and Washington Prime Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmland Partners 0 1 0 0 2.00
Washington Prime Group 0 0 0 0 N/A

Farmland Partners presently has a consensus price target of $7.50, suggesting a potential upside of 10.13%. Given Farmland Partners’ higher probable upside, equities analysts clearly believe Farmland Partners is more favorable than Washington Prime Group.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Farmland Partners $56.07 million 3.60 $12.25 million $0.24 28.38
Washington Prime Group N/A N/A N/A N/A N/A

Farmland Partners has higher revenue and earnings than Washington Prime Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Farmland Partners 30.75% 5.13% 1.50%
Washington Prime Group N/A N/A N/A

Dividends

Farmland Partners pays an annual dividend of $0.20 per share and has a dividend yield of 2.9%. Washington Prime Group does not pay a dividend. Farmland Partners pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

50.4% of Farmland Partners shares are held by institutional investors. 8.3% of Farmland Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Farmland Partners beats Washington Prime Group on 8 of the 9 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 approximately 162,000 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 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.

About Washington Prime Group

Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties. The Company combines a national real estate portfolio with an investment grade balance sheet, leveraging its expertise across the entire shopping center sector to increase cash flow through rigorous management of assets and provide new opportunities to retailers looking for growth throughout the U.S. Washington Prime Group and Shelby's Sugar Shop are registered trademarks of the Company. Trademark and patent registrations for Tangible are currently pending.

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