Fathom (NASDAQ:FTHM – Get Free Report) and Stratus Properties (NASDAQ:STRS – Get Free Report) are both small-cap real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Fathom and Stratus Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fathom | -6.27% | -75.89% | -33.25% |
| Stratus Properties | 74.96% | 6.28% | 3.83% |
Insider & Institutional Ownership
55.5% of Fathom shares are held by institutional investors. Comparatively, 61.6% of Stratus Properties shares are held by institutional investors. 16.4% of Fathom shares are held by insiders. Comparatively, 10.0% of Stratus Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Earnings and Valuation
This table compares Fathom 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 | |
| Fathom | $420.48 million | 0.02 | -$20.31 million | ($0.80) | -0.27 |
| Stratus Properties | $28.66 million | 5.01 | $11.98 million | $2.64 | 6.80 |
Stratus Properties has lower revenue, but higher earnings than Fathom. Fathom is trading at a lower price-to-earnings ratio than Stratus Properties, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Fathom and Stratus Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fathom | 1 | 0 | 0 | 1 | 2.50 |
| Stratus Properties | 1 | 0 | 0 | 0 | 1.00 |
Fathom presently has a consensus target price of $2.50, suggesting a potential upside of 1,076.47%. Given Fathom’s stronger consensus rating and higher possible upside, equities analysts clearly believe Fathom is more favorable than Stratus Properties.
Summary
Stratus Properties beats Fathom on 8 of the 14 factors compared between the two stocks.
About Fathom
Fathom Holdings Inc. provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers. It offers access to various properties for sale or lease through its FathomRealty.com website to buyers, sellers, landlords, and tenants; insurance agency services; and title services. In addition, the company provides intelliAgent, a real estate technology platform that offers a suite of brokerage and agent level tools, technology, business processes, business intelligence and reporting, and training; transaction, personnel, customer relationship, and accounting management for agent transactions; and reporting, social media marketing, and other marketing and marketing repository services, as well as marketplace for add-on services and third-party technology. Its brands include Fathom Realty, Dagley Insurance, Encompass Lending, intelliAgent, LiveBy, Real Results, Verus Title, and Cornerstone. The company was founded in 2010 and is headquartered in Cary, North Carolina.
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.
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