Financial Analysis: EPR Properties (NYSE:EPR) versus Rayonier (NYSE:RYN)

Rayonier (NYSE:RYN) and EPR Properties (NYSE:EPR) are both mid-cap real estate companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Institutional and Insider Ownership

89.1% of Rayonier shares are held by institutional investors. Comparatively, 74.7% of EPR Properties shares are held by institutional investors. 0.8% of Rayonier shares are held by company insiders. Comparatively, 0.0% of EPR Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Rayonier and EPR Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rayonier	7.83%	3.49%	2.37%
EPR Properties	38.83%	12.80%	5.11%

Risk & Volatility

Rayonier has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares Rayonier and EPR Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rayonier	$968.29 million	6.20	$474.38 million	$0.45	44.85
EPR Properties	$718.36 million	6.36	$274.94 million	$3.54	16.86

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	0	5	0	1	2.33
EPR Properties	0	5	8	0	2.62

Rayonier presently has a consensus price target of $22.80, indicating a potential upside of 12.97%. EPR Properties has a consensus price target of $65.14, indicating a potential upside of 9.14%. Given Rayonier’s higher possible upside, analysts plainly believe Rayonier is more favorable than EPR Properties.

Dividends

Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 5.2%. EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.2%. Rayonier pays out 231.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties pays out 105.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

EPR Properties beats Rayonier on 11 of the 18 factors compared between the two stocks.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.