Financial Review: Santa Fe Financ (OTCMKTS:SFEF) versus TPG RE Finance Trust (NYSE:TRTX)

Santa Fe Financ (OTCMKTS:SFEF) and TPG RE Finance Trust (NYSE:TRTX) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Santa Fe Financ and TPG RE Finance Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Santa Fe Financ	0	0	0	0	0.00
TPG RE Finance Trust	1	1	4	0	2.50

TPG RE Finance Trust has a consensus target price of $10.17, indicating a potential upside of 28.29%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, analysts clearly believe TPG RE Finance Trust is more favorable than Santa Fe Financ.

Earnings and Valuation

This table compares Santa Fe Financ and TPG RE Finance Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Santa Fe Financ	N/A	N/A	N/A	N/A	N/A
TPG RE Finance Trust	$332.58 million	1.87	$60.32 million	$0.56	14.15

TPG RE Finance Trust has higher revenue and earnings than Santa Fe Financ.

Institutional and Insider Ownership

57.1% of TPG RE Finance Trust shares are held by institutional investors. 87.4% of Santa Fe Financ shares are held by insiders. Comparatively, 3.0% of TPG RE Finance Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Santa Fe Financ	N/A	N/A	N/A
TPG RE Finance Trust	18.14%	6.84%	1.79%

Summary

TPG RE Finance Trust beats Santa Fe Financ on 8 of the 9 factors compared between the two stocks.

About Santa Fe Financ

Santa Fe Financial Corporation owns and operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel property consists of 544 guest rooms and luxury suites, and related facilities, including a five level underground parking garage. The company also owns and operates a 27-unit and a 2-unit multi-family apartment complex located in Los Angeles, California, as well as owns approximately 2 acres of unimproved land for development in Maui, Hawaii. Further, it invests in instruments, corporate debt and equity securities, publicly traded investment funds, mortgage backed securities, securities issued by REIT's, and other companies, which invest primarily in real estate. The company was formerly known as Tri Financial Corporation and changed its name to Santa Fe Financial Corporation in September 1970. The company was founded in 1967 and is based in Los Angeles, California. Santa Fe Financial Corporation is a subsidiary of The InterGroup Corporation.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.