Critical Comparison: Farmland Partners (NYSE:FPI) and Selectis Health (OTCMKTS:GBCS)

Dividends

Farmland Partners pays an annual dividend of $0.24 per share and has a dividend yield of 2.2%. Selectis Health pays an annual dividend of $0.04 per share and has a dividend yield of 1.8%. Farmland Partners pays out 24.0% of its earnings in the form of a dividend. Selectis Health pays out -2.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares Farmland Partners and Selectis Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmland Partners	$58.23 million	8.60	$30.91 million	$1.00	10.92
Selectis Health	$36.78 million	0.19	-$3.97 million	($1.79)	-1.26

Farmland Partners has higher revenue and earnings than Selectis Health. Selectis Health is trading at a lower price-to-earnings ratio than Farmland Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Farmland Partners and Selectis Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmland Partners	102.89%	11.47%	5.82%
Selectis Health	-14.37%	N/A	-14.59%

Volatility & Risk

Farmland Partners has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Selectis Health has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500.

Institutional & Insider Ownership

58.0% of Farmland Partners shares are owned by institutional investors. 8.3% of Farmland Partners shares are owned by company insiders. Comparatively, 15.2% of Selectis Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Farmland Partners beats Selectis Health on 11 of the 13 factors compared between the two stocks.

About Farmland Partners

Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has approximately 26 crop types and over 100 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014.

About Selectis Health

Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.