Financial Comparison: TPG RE Finance Trust (TRTX) & LendingTree (NASDAQ:TREE)

LendingTree (NASDAQ: TREE) and TPG RE Finance Trust (NYSE:TRTX) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for LendingTree and TPG RE Finance Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingTree 1 0 10 0 2.82
TPG RE Finance Trust 0 2 3 0 2.60

LendingTree presently has a consensus target price of $246.09, suggesting a potential downside of 19.81%. TPG RE Finance Trust has a consensus target price of $21.20, suggesting a potential upside of 9.67%. Given TPG RE Finance Trust’s higher possible upside, analysts plainly believe TPG RE Finance Trust is more favorable than LendingTree.

Dividends

TPG RE Finance Trust pays an annual dividend of $0.33 per share and has a dividend yield of 1.7%. LendingTree does not pay a dividend.

Insider and Institutional Ownership

72.1% of LendingTree shares are held by institutional investors. Comparatively, 26.4% of TPG RE Finance Trust shares are held by institutional investors. 21.9% of LendingTree shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares LendingTree and TPG RE Finance Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LendingTree $384.40 million 9.56 $27.49 million $2.28 134.61
TPG RE Finance Trust $92.39 million 12.47 $69.96 million N/A N/A

TPG RE Finance Trust has lower revenue, but higher earnings than LendingTree.

Profitability

This table compares LendingTree and TPG RE Finance Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LendingTree 5.49% 16.52% 8.79%
TPG RE Finance Trust N/A N/A N/A

Summary

LendingTree beats TPG RE Finance Trust on 8 of the 12 factors compared between the two stocks.

About LendingTree

LendingTree, Inc. (LendingTree) is engaged in operating an online loan marketplace for consumers seeking loans and other credit-based offerings. The Company’s online marketplace provides consumers with access to product offerings from various lenders, which it refers to as Network Lenders, including mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, personal loans, student loans, small business loans and other related offerings. In addition, the Company offers tools and resources, including free credit scores that facilitate comparison shopping for these loans and other credit-based offerings. The Company offers its products in categories, including mortgage products and non-mortgage products. Its mortgage products category includes its purchase and refinance products. Its non-mortgage products include lending products and other products.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.

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