Stratus Properties (NASDAQ:STRS) & Cushman & Wakefield (NYSE:CWK) Critical Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cushman & Wakefield	1.70%	13.50%	3.11%
Stratus Properties	-16.72%	-1.84%	-1.04%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cushman & Wakefield	$9.45 billion	0.28	$131.30 million	$0.69	16.35
Stratus Properties	$54.18 million	2.78	$1.96 million	($0.68)	-27.47

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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cushman & Wakefield and Stratus Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cushman & Wakefield	1	4	2	0	2.14
Stratus Properties	0	0	0	0	0.00

Cushman & Wakefield currently has a consensus target price of $13.43, indicating a potential upside of 19.02%. Given Cushman & Wakefield’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Cushman & Wakefield is more favorable than Stratus Properties.

Risk and Volatility

Cushman & Wakefield has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Stratus Properties has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

95.6% of Cushman & Wakefield shares are owned by institutional investors. Comparatively, 61.6% of Stratus Properties shares are owned by institutional investors. 1.2% of Cushman & Wakefield shares are owned by insiders. Comparatively, 10.0% of Stratus Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Cushman & Wakefield beats Stratus Properties on 12 of the 14 factors compared between the two stocks.

About Cushman & Wakefield

Cushman & Wakefield Plc engages in the provision of commercial real estate services. It operates through the following geographical segments: Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC). The Americas segment consists of operations located in the United States, Canada and key markets in Latin America. The EMEA segment includes operations in the UK, France, Netherlands and other markets in Europe and the Middle East. The APAC segment comprises of operations in Australia, Singapore, China and other markets in the Asia Pacific region. The company was founded in 1917 and is headquartered in London, the United Kingdom.

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.