Reviewing Stratus Properties (NASDAQ:STRS) & KE (NYSE:BEKE)

KE (NYSE:BEKE) and Stratus Properties (NASDAQ:STRS) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

39.3% of KE shares are owned by institutional investors. Comparatively, 61.6% of Stratus Properties shares are owned by institutional investors. 6.8% of KE shares are owned by insiders. Comparatively, 10.0% of Stratus Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares KE and Stratus Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KE	$13.52 billion	1.35	$428.13 million	$0.61	26.75
Stratus Properties	$28.66 million	5.12	$11.98 million	$2.64	6.95

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

Volatility and Risk

KE has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500. Comparatively, Stratus Properties has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KE	5.38%	7.62%	4.38%
Stratus Properties	74.96%	6.28%	3.83%

Analyst Ratings

This is a summary of recent ratings and recommmendations for KE and Stratus Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KE	0	1	6	1	3.00
Stratus Properties	1	0	0	0	1.00

KE currently has a consensus target price of $23.64, suggesting a potential upside of 44.90%. Given KE’s stronger consensus rating and higher probable upside, equities research analysts clearly believe KE is more favorable than Stratus Properties.

Summary

KE beats Stratus Properties on 9 of the 15 factors compared between the two stocks.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

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.