Analyzing Transcontinental Realty Investors (NYSE:TCI) & AMREP (NYSE:AXR)

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

Analyst Ratings

This is a summary of recent ratings and price targets for Transcontinental Realty Investors and AMREP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	1	0	0	2.00
AMREP	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	11.52%	0.30%	0.23%
AMREP	22.86%	7.98%	7.73%

Valuation and Earnings

This table compares Transcontinental Realty Investors and AMREP”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	$46.08 million	10.59	$5.86 million	$0.64	88.23
AMREP	$49.69 million	2.06	$12.72 million	$1.95	9.87

AMREP has higher revenue and earnings than Transcontinental Realty Investors. AMREP is trading at a lower price-to-earnings ratio than Transcontinental Realty Investors, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

59.9% of AMREP shares are owned by institutional investors. 86.2% of Transcontinental Realty Investors shares are owned by insiders. Comparatively, 37.2% of AMREP shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Transcontinental Realty Investors has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, AMREP has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Summary

AMREP beats Transcontinental Realty Investors on 8 of the 11 factors compared between the two stocks.

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 office buildings, apartments, 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. The Company also holds mortgage receivables.

About AMREP

AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.