RPT Realty (NYSE:RPT) and Transcontinental Realty Investors (NYSE:TCI) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

2.4% of Transcontinental Realty Investors shares are held by institutional investors. 3.6% of RPT Realty shares are held by company insiders. Comparatively, 87.9% of Transcontinental Realty Investors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares RPT Realty and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RPT Realty 7.90% 2.63% 1.00%
Transcontinental Realty Investors 198.07% 2.45% 0.84%

Earnings & Valuation

This table compares RPT Realty and Transcontinental Realty Investors’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RPT Realty $260.62 million 4.17 $17.62 million $1.35 10.02
Transcontinental Realty Investors $120.96 million 2.33 $181.45 million N/A N/A

Transcontinental Realty Investors has lower revenue, but higher earnings than RPT Realty.

Analyst Recommendations

This is a summary of current ratings and price targets for RPT Realty and Transcontinental Realty Investors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RPT Realty 1 0 0 0 1.00
Transcontinental Realty Investors 0 0 0 0 N/A

RPT Realty presently has a consensus target price of $10.50, suggesting a potential downside of 22.39%. Given RPT Realty’s higher probable upside, analysts clearly believe RPT Realty is more favorable than Transcontinental Realty Investors.

Dividends

RPT Realty pays an annual dividend of $0.88 per share and has a dividend yield of 6.5%. Transcontinental Realty Investors does not pay a dividend. RPT Realty pays out 65.2% of its earnings in the form of a dividend.

Risk and Volatility

RPT Realty has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Summary

RPT Realty beats Transcontinental Realty Investors on 7 of the 13 factors compared between the two stocks.

About RPT Realty

RPT Realty owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets. The Company's locally-curated consumer experiences reflect the lifestyles of its diverse neighborhoods and match the modern expectations of its retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange under the ticker symbol RPT. As of March 31, 2019, the Company's portfolio consisted of 49 shopping centers (including 1 shopping center owned through a joint venture) representing 11.9 million square feet. As of March 31, 2019, the Company's aggregate portfolio was 94.8% leased.

About Transcontinental Realty Investors

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.

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