Transcontinental Realty Investors (NYSE: TCI) and Howard Hughes Corporation (The) (NYSE:HHC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitabiliy, institutional ownership, analyst recommendations, valuation and risk.
Insider and Institutional Ownership
0.3% of Transcontinental Realty Investors shares are held by institutional investors. Comparatively, 86.0% of Howard Hughes Corporation (The) shares are held by institutional investors. 81.0% of Transcontinental Realty Investors shares are held by company insiders. Comparatively, 13.8% of Howard Hughes Corporation (The) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Transcontinental Realty Investors and Howard Hughes Corporation (The), as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Transcontinental Realty Investors | 0 | 3 | 0 | 0 | 2.00 |
| Howard Hughes Corporation (The) | 0 | 1 | 3 | 0 | 2.75 |
Transcontinental Realty Investors presently has a consensus target price of $20.33, indicating a potential downside of 17.75%. Howard Hughes Corporation (The) has a consensus target price of $149.75, indicating a potential upside of 18.93%. Given Howard Hughes Corporation (The)’s stronger consensus rating and higher possible upside, analysts clearly believe Howard Hughes Corporation (The) is more favorable than Transcontinental Realty Investors.
Volatility & Risk
Transcontinental Realty Investors has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500. Comparatively, Howard Hughes Corporation (The) has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Profitability
This table compares Transcontinental Realty Investors and Howard Hughes Corporation (The)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Transcontinental Realty Investors | -1.29% | -0.70% | -0.13% |
| Howard Hughes Corporation (The) | 6.27% | 7.54% | 3.02% |
Valuation and Earnings
This table compares Transcontinental Realty Investors and Howard Hughes Corporation (The)’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Transcontinental Realty Investors | $121.07 million | 1.78 | $43.45 million | ($0.28) | -88.28 |
| Howard Hughes Corporation (The) | $1.03 billion | 4.88 | $302.06 million | $1.50 | 83.94 |
Howard Hughes Corporation (The) has higher revenue and earnings than Transcontinental Realty Investors. Transcontinental Realty Investors is trading at a lower price-to-earnings ratio than Howard Hughes Corporation (The), indicating that it is currently the more affordable of the two stocks.
Summary
Howard Hughes Corporation (The) beats Transcontinental Realty Investors on 12 of the 13 factors compared between the two stocks.
Transcontinental Realty Investors Company Profile
Transcontinental Realty Investors, Inc. is an externally advised and managed real estate investment company that owns a portfolio of income-producing properties and land held for development. The Company’s segments are Commercial Properties, Apartments, Land and Other. Its portfolio of income-producing properties includes residential apartment communities, office buildings and other commercial properties. It acquires land mainly in in-fill locations or suburban markets. The Company’s income-producing properties consist of approximately eight commercial properties, including five office buildings, two retail properties and an industrial warehouse, comprising in aggregate approximately 1.9 million square feet; a golf course comprising approximately 96.09 acres, and approximately 50 residential apartment communities comprising over 7,980 units, excluding apartments being developed. In addition, it owns approximately 3,660 acres of land held for development.
Howard Hughes Corporation (The) Company Profile
The Howard Hughes Corporation is a developer of master planned communities and mixed use properties. The Company is engaged in the ownership, management and the redevelopment or repositioning of real estate assets, as well as other real estate opportunities in the form of entitled and unentitled land and other development rights, also called Strategic Developments. It operates through three segments: Master Planned Communities, Operating Assets and Strategic Developments. Its Master Planned Communities segment consists of the development and sale of residential land and the development of commercial land to hold, develop or sell. Its master planned communities include The Woodlands, Summerlin, Maryland, Bridgeland and The Woodlands Hills. As of December 31, 2016, its Operating Assets segment included 54 properties, investments and other assets. As of December 31, 2016, the Strategic Developments segment included 23 development projects.
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