Farmland Partners (FPI) & Its Competitors Head-To-Head Analysis

Farmland Partners (NYSE: FPI) is one of 16 publicly-traded companies in the “Specialized REITs” industry, but how does it weigh in compared to its peers? We will compare Farmland Partners to similar businesses based on the strength of its analyst recommendations, institutional ownership, dividends, profitability, earnings, valuation and risk.

Institutional and Insider Ownership

39.7% of Farmland Partners shares are held by institutional investors. Comparatively, 64.6% of shares of all “Specialized REITs” companies are held by institutional investors. 2.8% of Farmland Partners shares are held by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Farmland Partners and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Farmland Partners 0 4 1 0 2.20
Farmland Partners Competitors 26 210 552 20 2.70

Farmland Partners currently has a consensus price target of $9.94, indicating a potential upside of 9.93%. As a group, “Specialized REITs” companies have a potential upside of 12.40%. Given Farmland Partners’ peers stronger consensus rating and higher possible upside, analysts plainly believe Farmland Partners has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Farmland Partners and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Farmland Partners $38.89 million $24.04 million 75.34
Farmland Partners Competitors $1.00 billion $531.02 million 28.89

Farmland Partners’ peers have higher revenue and earnings than Farmland Partners. Farmland Partners is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Farmland Partners pays an annual dividend of $0.51 per share and has a dividend yield of 5.6%. Farmland Partners pays out 425.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 170.4% of their earnings in the form of a dividend. Farmland Partners has increased its dividend for 2 consecutive years.

Volatility and Risk

Farmland Partners has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Farmland Partners’ peers have a beta of 0.85, meaning that their average stock price is 15% less volatile than the S&P 500.

Profitability

This table compares Farmland Partners and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Farmland Partners 12.46% 1.66% 0.60%
Farmland Partners Competitors 36.41% 8.84% 3.25%

Summary

Farmland Partners peers beat Farmland Partners on 14 of the 15 factors compared.

Farmland Partners Company Profile

Farmland Partners, Inc. is an internally managed real estate company. The Company owns and seeks to acquire farmland located in agricultural markets throughout North America. The Company is the sole member of the general partner of Farmland Partners Operating Partnership, LP (the Operating Partnership). All of the Company’s assets are held by, and its operations are primarily conducted through, the Operating Partnership and the subsidiaries of the Operating Partnership. The Company’s principal investment focus is on farmland located in agricultural markets throughout North America, however, it may seek to acquire farmland outside of North America. It also may acquire properties related to farming, such as grain storage facilities, grain elevators, feedlots, cold storage facilities, processing plants and distribution centers, as well as livestock farms or ranches. As of December 31, 2016, the Company owned approximately 115,489 acres, as well as eight grain storage facilities.

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