Transcontinental Realty Investors (TCI) versus RLJ Lodging Trust (RLJ) Critical Review
Transcontinental Realty Investors (NYSE:TCI) and RLJ Lodging Trust (NYSE:RLJ) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Valuation & Earnings
This table compares Transcontinental Realty Investors and RLJ Lodging Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Transcontinental Realty Investors||$125.23 million||2.13||-$15.81 million||N/A||N/A|
|RLJ Lodging Trust||$1.36 billion||2.55||$74.83 million||$2.40||8.22|
Risk and Volatility
Transcontinental Realty Investors has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500. Comparatively, RLJ Lodging Trust has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
This table compares Transcontinental Realty Investors and RLJ Lodging Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Transcontinental Realty Investors||5.39%||-1.46%||-0.24%|
|RLJ Lodging Trust||5.72%||3.11%||1.48%|
RLJ Lodging Trust pays an annual dividend of $1.32 per share and has a dividend yield of 6.7%. Transcontinental Realty Investors does not pay a dividend. RLJ Lodging Trust pays out 55.0% of its earnings in the form of a dividend. RLJ Lodging Trust has raised its dividend for 7 consecutive years.
Institutional & Insider Ownership
2.8% of Transcontinental Realty Investors shares are owned by institutional investors. Comparatively, 98.5% of RLJ Lodging Trust shares are owned by institutional investors. 87.7% of Transcontinental Realty Investors shares are owned by insiders. Comparatively, 1.6% of RLJ Lodging Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for Transcontinental Realty Investors and RLJ Lodging Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Transcontinental Realty Investors||0||0||0||0||N/A|
|RLJ Lodging Trust||1||4||3||0||2.25|
RLJ Lodging Trust has a consensus target price of $22.57, indicating a potential upside of 14.46%. Given RLJ Lodging Trust’s higher possible upside, analysts plainly believe RLJ Lodging Trust is more favorable than Transcontinental Realty Investors.
RLJ Lodging Trust beats Transcontinental Realty Investors on 12 of the 14 factors compared between the two stocks.
Transcontinental Realty Investors Company Profile
Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including apartments, office buildings, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. For more information, visit the Company's website at www.transconrealty-invest.com.
RLJ Lodging Trust Company Profile
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 154 hotels with approximately 30,000 rooms located in 26 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.
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