Millrose Properties (NYSE:MRP) and Rayonier (NYSE:RYN) Critical Survey

Rayonier (NYSE:RYN) and Millrose Properties (NYSE:MRP) are both mid-cap real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Risk and Volatility

Rayonier has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Dividends

Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 10.6%. Rayonier pays out 231.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rayonier and Millrose Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	1	4	0	1	2.17
Millrose Properties	0	1	2	1	3.00

Rayonier currently has a consensus price target of $24.60, suggesting a potential upside of 12.93%. Millrose Properties has a consensus price target of $37.67, suggesting a potential upside of 29.87%. Given Millrose Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Millrose Properties is more favorable than Rayonier.

Profitability

This table compares Rayonier and Millrose Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rayonier	7.83%	3.49%	2.37%
Millrose Properties	62.60%	8.13%	5.07%

Institutional and Insider Ownership

89.1% of Rayonier shares are owned by institutional investors. 0.9% of Rayonier shares are owned by company insiders. Comparatively, 0.2% of Millrose Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Rayonier and Millrose Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rayonier	$484.50 million	13.52	$474.38 million	$0.45	48.41
Millrose Properties	$600.46 million	7.45	$379.86 million	$2.87	10.11

Rayonier has higher earnings, but lower revenue than Millrose Properties. Millrose Properties is trading at a lower price-to-earnings ratio than Rayonier, indicating that it is currently the more affordable of the two stocks.

Summary

Millrose Properties beats Rayonier on 10 of the 16 factors compared between the two stocks.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).

About Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.