Analyzing Cushman & Wakefield (NYSE:CWK) and Stratus Properties (NASDAQ:STRS)

Stratus Properties (NASDAQ:STRS) and Cushman & Wakefield (NYSE:CWK) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Risk & Volatility

Stratus Properties has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Cushman & Wakefield has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Stratus Properties and Cushman & Wakefield, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratus Properties	1	0	0	0	1.00
Cushman & Wakefield	1	3	5	0	2.44

Cushman & Wakefield has a consensus target price of $16.57, suggesting a potential upside of 19.94%. Given Cushman & Wakefield’s stronger consensus rating and higher possible upside, analysts clearly believe Cushman & Wakefield is more favorable than Stratus Properties.

Profitability

This table compares Stratus Properties and Cushman & Wakefield’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stratus Properties	74.96%	6.28%	3.83%
Cushman & Wakefield	0.63%	16.60%	4.35%

Institutional and Insider Ownership

61.6% of Stratus Properties shares are owned by institutional investors. Comparatively, 95.6% of Cushman & Wakefield shares are owned by institutional investors. 10.0% of Stratus Properties shares are owned by insiders. Comparatively, 0.7% of Cushman & Wakefield shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Stratus Properties and Cushman & Wakefield”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stratus Properties	$28.66 million	4.75	$11.98 million	$2.64	6.44
Cushman & Wakefield	$11.02 billion	0.29	$88.20 million	$0.29	47.64

Cushman & Wakefield has higher revenue and earnings than Stratus Properties. Stratus Properties is trading at a lower price-to-earnings ratio than Cushman & Wakefield, indicating that it is currently the more affordable of the two stocks.

Summary

Cushman & Wakefield beats Stratus Properties on 10 of the 14 factors compared between the two stocks.

About Stratus Properties

Stratus Properties Inc. is a real estate development company headquartered in Austin, Texas. The company focuses on the acquisition, entitlement, development, management and sale of residential and commercial properties, with an emphasis on large-scale, mixed-use communities. Its residential activities include the development of single-family and multifamily properties, while its commercial portfolio has included office, retail, hotel and other hospitality projects. Stratus has also developed master-planned communities and mixed-use projects that combine housing, retail, dining, office and recreational uses.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a global commercial real estate services firm that advises property owners, occupiers, investors and developers. Its services include leasing and sales brokerage, capital markets, property and facilities management, valuation, project management and real estate consulting. The company serves clients across the Americas, Europe, the Middle East and Africa, and Asia-Pacific. Its history traces back to Cushman & Wakefield’s founding in 1917, and the current company took shape in 2015 following the combination of Cushman & Wakefield and DTZ.