Critical Review: Strawberry Fields REIT (STRW) & Its Rivals

Strawberry Fields REIT (NASDAQ:STRW) is one of 293 public companies in the “Real estate investment trusts” industry, but how does it contrast to its rivals? We will compare Strawberry Fields REIT to similar businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, profitability, institutional ownership and risk.

Volatility and Risk

Strawberry Fields REIT has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Strawberry Fields REIT’s rivals have a beta of 1.24, indicating that their average share price is 24% more volatile than the S&P 500.

Institutional and Insider Ownership

68.7% of shares of all “Real estate investment trusts” companies are owned by institutional investors. 10.6% of Strawberry Fields REIT shares are owned by company insiders. Comparatively, 7.0% of shares of all “Real estate investment trusts” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Strawberry Fields REIT pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Strawberry Fields REIT pays out 98.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.5% and pay out -26.0% of their earnings in the form of a dividend. Strawberry Fields REIT lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for Strawberry Fields REIT and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strawberry Fields REIT	0	0	1	0	3.00
Strawberry Fields REIT Competitors	4643	15471	15050	443	2.32

Strawberry Fields REIT presently has a consensus target price of $14.00, indicating a potential upside of 11.20%. As a group, “Real estate investment trusts” companies have a potential upside of 12.57%. Given Strawberry Fields REIT’s rivals higher probable upside, analysts clearly believe Strawberry Fields REIT has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Strawberry Fields REIT and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Strawberry Fields REIT	$117.06 million	$2.50 million	22.09
Strawberry Fields REIT Competitors	$989.42 million	$145.17 million	26.15

Strawberry Fields REIT’s rivals have higher revenue and earnings than Strawberry Fields REIT. Strawberry Fields REIT is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Strawberry Fields REIT and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strawberry Fields REIT	2.98%	6.64%	0.52%
Strawberry Fields REIT Competitors	-2.42%	-3.46%	1.20%

Summary

Strawberry Fields REIT rivals beat Strawberry Fields REIT on 10 of the 15 factors compared.

About Strawberry Fields REIT

Strawberry Fields REIT, Inc. engages in the ownership, acquisition, development, and leasing of skilled nursing and certain other healthcare-related properties. The company was founded by Moishe Gubin in 2014 and is headquartered in South Bend, IN.