Comparing NewLake Capital Partners (OTCMKTS:NLCP) & Rayonier (NYSE:RYN)

NewLake Capital Partners (OTCMKTS:NLCP) and Rayonier (NYSE:RYN) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares NewLake Capital Partners and Rayonier’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewLake Capital Partners	N/A	N/A	N/A	N/A	N/A
Rayonier	$1.06 billion	4.25	$173.49 million	$1.17	25.85

Rayonier has higher revenue and earnings than NewLake Capital Partners.

Analyst Recommendations

This is a breakdown of current ratings and target prices for NewLake Capital Partners and Rayonier, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewLake Capital Partners	0	0	1	0	3.00
Rayonier	0	2	0	0	2.00

NewLake Capital Partners presently has a consensus target price of $18.25, indicating a potential downside of 1.08%. Rayonier has a consensus target price of $34.50, indicating a potential upside of 14.09%. Given Rayonier’s higher possible upside, analysts clearly believe Rayonier is more favorable than NewLake Capital Partners.

Profitability

This table compares NewLake Capital Partners and Rayonier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewLake Capital Partners	N/A	N/A	N/A
Rayonier	16.41%	2.89%	1.44%

Summary

Rayonier beats NewLake Capital Partners on 7 of the 9 factors compared between the two stocks.

About NewLake Capital Partners

NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases and funding for build-to-suit projects. NewLake owns a portfolio of 31 properties comprised of 14 cultivation facilities and 17 dispensaries that are leased to single tenants on a triple-net basis.

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).