Net Lease Office Properties (NLOP) vs Stratus Properties Inc. (STRS)

Net Lease Office Properties and Stratus Properties Inc. are both in the Real Estate sector (Reit Office and Real Estate Diversified). Net Lease Office Properties and Stratus Properties Inc. are of similar size ($154.2M and $143.9M). Net Lease Office Properties has negative trailing earnings, so its P/E is not meaningful; Stratus Properties Inc. trades at 6.6×. Stratus Properties Inc. grew revenue faster over the last twelve months: −12.4% against −35.5%. Stratus Properties Inc. has the higher net margin (75.0% vs −59.8%) and the higher return on invested capital (4.43% vs −13.8%). Across the 18 metrics below, Stratus Properties Inc. leads on 10 and Net Lease Office Properties on 8.

Valuation

Metric NLOP STRS
P/E n/m 6.65
P/S 1.91 4.93
P/B 0.86 0.40
Price to free cash flow 0.43 1.50
EV/EBITDA n/m 5.53
EV/Sales 1.88 7.35
Earnings yield (31.32%) 15.04%
Free cash flow yield 230.10% 66.54%

Profitability

Metric NLOP STRS
Gross margin 89.38% (32.50%)
Operating margin (48.17%) 103.93%
Net margin (59.82%) 74.96%
Free cash flow margin 438.71% 328.08%
Return on equity (13.52%) 6.68%
Return on assets (10.44%) 4.03%
Return on invested capital (13.77%) 4.43%

Growth

Metric NLOP STRS
Revenue growth (TTM) (35.45%) (12.40%)
EPS growth (last fiscal year) (58.74%) 512.50%
Revenue growth, 5-year CAGR — (7.57%)
Net income growth, 5-year CAGR — 0.00%

Health

Metric NLOP STRS
Debt to equity 0.13 0.41
Current ratio 2.37 3.70
Net debt to EBITDA 1.63 3.57

Dividend

Metric NLOP STRS
Dividend yield 41.97% —
Payout ratio — —

Size

Metric NLOP STRS
Market cap 143.85m 154.23m

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