Critical Survey: Stratus Properties (NASDAQ:STRS) & MJ (OTCMKTS:MJNE)

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

Valuation & Earnings

This table compares Stratus Properties and MJ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stratus Properties	$54.18 million	4.34	$1.96 million	($1.01)	-29.11
MJ	N/A	N/A	N/A	N/A	N/A

Stratus Properties has higher revenue and earnings than MJ.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stratus Properties	-25.38%	-2.57%	-1.46%
MJ	N/A	N/A	N/A

Volatility and Risk

Stratus Properties has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, MJ has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratus Properties	1	0	0	0	1.00
MJ	0	0	0	0	0.00

Given MJ’s higher possible upside, analysts plainly believe MJ is more favorable than Stratus Properties.

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. Comparatively, 35.9% of MJ 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.

Summary

MJ beats Stratus Properties on 5 of the 9 factors compared between the two stocks.

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.

About MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.