Critical Analysis: Vonovia (OTCMKTS:VONOY) & Stratus Properties (NASDAQ:STRS)

Vonovia (OTCMKTS:VONOY) and Stratus Properties (NASDAQ:STRS) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Institutional and Insider Ownership

61.6% of Stratus Properties shares are held by institutional investors. 10.0% of Stratus Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Vonovia and Stratus Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vonovia	0	0	1	0	3.00
Stratus Properties	0	1	0	0	2.00

Volatility & Risk

Vonovia has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Stratus Properties has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares Vonovia and Stratus Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vonovia	$5.56 billion	4.20	$4.21 billion	$2.70	5.10
Stratus Properties	$29.91 million	8.27	$11.98 million	$1.46	21.23

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

Profitability

This table compares Vonovia and Stratus Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vonovia	39.42%	12.34%	3.98%
Stratus Properties	40.06%	3.66%	2.13%

Summary

Vonovia beats Stratus Properties on 8 of the 13 factors compared between the two stocks.

About Vonovia

Vonovia SE operates as an integrated residential real estate company in Europe. It operates through four segments: Rental, Value-Add, Recurring Sales, and Development. The company offers property management services; property-related services; and value-added services, including maintenance and modernization of residential properties, craftsmen and residential environment organization, condominium administration, cable TV, metering, energy supply, and insurances services. It also engages in the sale of individual condominiums and single-family houses; and project development activities. The company was formerly known as Deutsche Annington Immobilien SE and changed its name to Vonovia SE in August 2015. Vonovia SE was founded in 1998 and is headquartered in Bochum, Germany.

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.