Daito Trust Construction (OTCMKTS:DIFTY) versus Stratus Properties (NASDAQ:STRS) Critical Review

Stratus Properties (NASDAQ:STRS) and Daito Trust Construction (OTCMKTS:DIFTY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Profitability

This table compares Stratus Properties and Daito Trust Construction’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stratus Properties	-25.38%	-2.57%	-1.46%
Daito Trust Construction	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for Stratus Properties and Daito Trust Construction, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratus Properties	1	0	0	0	1.00
Daito Trust Construction	0	0	0	0	0.00

Institutional & Insider Ownership

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

Risk and Volatility

Stratus Properties has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Daito Trust Construction has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Valuation & Earnings

This table compares Stratus Properties and Daito Trust Construction”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stratus Properties	$54.18 million	4.34	$1.96 million	($1.01)	-29.11
Daito Trust Construction	$12.10 billion	0.67	$619.46 million	$0.26	22.62

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

Summary

Daito Trust Construction beats Stratus Properties on 7 of the 12 factors compared between the two stocks.

About Stratus Properties

Stratus Properties Inc., a real estate company, engages in the entitlement, development, management, leasing, and sale of multi and single family residential and commercial real estate properties in the Austin, Texas area and other select markets in Texas. The company operates in two segments, Real Estate Operations and Leasing Operations. Its leasing operations cover lease of space at retail and mixed-use and multi-family properties. The company was incorporated in 1992 and is headquartered in Austin, Texas.

About Daito Trust Construction

Daito Trust Construction Co.,Ltd. designs, constructs, and rents apartments and condominiums in Japan. It operates through three segments: Construction, Real Estate, and Finance. The company design and construct rental housing and other structure construction; ironwork and construction; building management and renovation, and whole building leasing; rental housing tenant guarantor services; advertising; and LP gas supply businesses. Further, the company operates day service centers and childcare facilities; operates hotels in Malaysia; and bridge financing for general contractors. Additionally, it sells short-term insurance; offers credit card settlements services; rental apartment and condominium brokering services; provides real estate management and asset succession consulting services; and offers document shipping and destruction, printing, and administrative services. The company also engages in development and sale of investment-type apartment properties, and management of facility reservation portal sites. Daito Trust Construction Co.,Ltd. was incorporated in 1974 and is headquartered in Tokyo, Japan.