American Farmland (NASDAQ: AFCO) and Reis (NASDAQ:REIS) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Dividends

Reis pays an annual dividend of $0.68 per share and has a dividend yield of 3.7%. American Farmland does not pay a dividend. Reis pays out 680.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

59.7% of Reis shares are owned by institutional investors. 21.6% of Reis shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for American Farmland and Reis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Farmland 0 0 0 0 N/A
Reis 0 0 2 0 3.00

Reis has a consensus target price of $24.50, suggesting a potential upside of 33.88%. Given Reis’ higher probable upside, analysts plainly believe Reis is more favorable than American Farmland.

Earnings and Valuation

This table compares American Farmland and Reis’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Farmland N/A N/A N/A N/A N/A
Reis $46.93 million 4.49 $6.64 million $0.10 183.02

Reis has higher revenue and earnings than American Farmland.

Profitability

This table compares American Farmland and Reis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Farmland 12.35% 1.47% 0.94%
Reis 2.49% 1.20% 0.92%

Summary

Reis beats American Farmland on 6 of the 10 factors compared between the two stocks.

About American Farmland

American Farmland Company is an internally managed real estate company. The Company owns a portfolio of farmland, consisting of mature permanent, specialty/vegetable row and commodity row crop farms, including farmland in development, located in select major agricultural regions in the United States. It operates through four segments: Permanent Crop, Specialty/Vegetable Row Crop, Commodity Row Crop and Development. Permanent Crop consists of its Kimberly Vineyard, Golden Eagle Ranch, Quail Run Vineyard, Blue Heron Farms, Falcon Farms and Kingfisher Ranch properties. Specialty/Vegetable Row Crop consists of its Sandpiper Ranch and Sweetwater Farm properties. Commodity Row Crop consists of its Pleasant Plains Farm, Macomb Farm, Kane County Farms and Tillar Farm. Development consists of its Blue Cypress Farm, Roadrunner Ranch, Condor Ranch (of which over 68 mature acres are subject to participating leases), Grassy Island Groves, Pintail Vineyards and Hawk Creek Ranch properties.

About Reis

Reis, Inc. (Reis) is engaged in providing commercial real estate market information and analytical tools to real estate professionals, through its Reis Services subsidiary. The Company operates through Reis Services segment. It maintains a database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the United States. The database contains information on apartment, office, retail, warehouse or distribution, flex or research and development, self-storage and seniors housing properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. Its product portfolio includes Reis Subscriber Edition (SE), its delivery platform aimed at larger and mid-sized enterprises; ReisReports, aimed at prosumers and smaller enterprises, and Mobiuss Portfolio CRE (Mobiuss), aimed at risk managers and credit administrators at banks and non-bank lending institutions.

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