Critical Review: FRP (NASDAQ:FRPH) versus J. W. Mays (NASDAQ:MAYS)

J. W. Mays (NASDAQ:MAYS) and FRP (NASDAQ:FRPH) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings and Valuation

This table compares J. W. Mays and FRP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J. W. Mays	$22.47 million	4.00	-$140,000.00	($0.26)	-171.31
FRP	$42.46 million	10.71	$6.39 million	$0.24	99.17

FRP has higher revenue and earnings than J. W. Mays. J. W. Mays is trading at a lower price-to-earnings ratio than FRP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares J. W. Mays and FRP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J. W. Mays	-2.24%	-0.94%	-0.56%
FRP	10.90%	1.00%	0.64%

Analyst Recommendations

This is a summary of current recommendations and price targets for J. W. Mays and FRP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J. W. Mays	1	0	0	0	1.00
FRP	1	0	0	0	1.00

Insider and Institutional Ownership

3.2% of J. W. Mays shares are owned by institutional investors. Comparatively, 45.4% of FRP shares are owned by institutional investors. 40.8% of J. W. Mays shares are owned by insiders. Comparatively, 22.8% of FRP shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

J. W. Mays has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, FRP has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Summary

FRP beats J. W. Mays on 10 of the 11 factors compared between the two stocks.

About J. W. Mays

J.W. Mays, Inc. owns, operates, and leases commercial real estate properties in United States. The company's properties are located in Brooklyn, Jamaica, Fishkill, Levittown, and Massapequa of New York; and Circleville of Ohio. The company was founded in 1924 and is based in Brooklyn, New York.

About FRP

FRP Holdings, Inc. engages in the real estate business in the United States. It operates through four segments: Industrial and Commercial, Mining Royalty Lands, Development, and Multifamily. The Industrial and Commercial segment owns, leases, and manages commercial properties. The Mining Royalty Lands segment leases and manages mining royalties owned by the company primarily in Florida, Georgia, and Virginia. The Development segment owns and monitors the use of parcels of land that are in various stages of development; and acquires, constructs, and develops primarily for apartment, retail, warehouse, and office buildings. The Multifamily segment owns, leases, and manages buildings through joint ventures. The company was incorporated in 2014 and is based in Jacksonville, Florida.