Howard Hughes Corporation (The) (NYSE: HHC) and Transcontinental Realty Investors (NYSE:TCI) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitabiliy and earnings.

Institutional & Insider Ownership

86.1% of Howard Hughes Corporation (The) shares are owned by institutional investors. Comparatively, 0.3% of Transcontinental Realty Investors shares are owned by institutional investors. 20.7% of Howard Hughes Corporation (The) shares are owned by insiders. Comparatively, 81.0% of Transcontinental Realty Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Howard Hughes Corporation (The) and Transcontinental Realty Investors’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Howard Hughes Corporation (The) $1.03 billion 4.76 $302.06 million $1.41 86.30
Transcontinental Realty Investors $121.07 million 1.50 $43.45 million ($0.28) -74.57

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.

Volatility and Risk

Howard Hughes Corporation (The) has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of -0.17, indicating that its stock price is 117% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Howard Hughes Corporation (The) and Transcontinental Realty Investors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Howard Hughes Corporation (The) 0 1 3 0 2.75
Transcontinental Realty Investors 0 3 0 0 2.00

Howard Hughes Corporation (The) presently has a consensus target price of $149.75, suggesting a potential upside of 23.07%. Transcontinental Realty Investors has a consensus target price of $20.33, suggesting a potential downside of 2.62%. Given Howard Hughes Corporation (The)’s stronger consensus rating and higher possible upside, research analysts plainly believe Howard Hughes Corporation (The) is more favorable than Transcontinental Realty Investors.

Profitability

This table compares Howard Hughes Corporation (The) and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Howard Hughes Corporation (The) 5.69% 4.99% 2.00%
Transcontinental Realty Investors -1.29% -0.70% -0.13%

Summary

Howard Hughes Corporation (The) beats Transcontinental Realty Investors on 12 of the 13 factors compared between the two stocks.

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.

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.

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