CapitaLand (OTCMKTS:CLLDY) & Tejon Ranch (NYSE:TRC) Financial Review

Tejon Ranch (NYSE:TRC) and CapitaLand (OTCMKTS:CLLDY) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Insider & Institutional Ownership

60.6% of Tejon Ranch shares are owned by institutional investors. 21.9% of Tejon Ranch shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Tejon Ranch and CapitaLand”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tejon Ranch	$50.88 million	8.95	$80,000.00	$0.07	240.96
CapitaLand	$4.74 billion	3.41	-$1.14 billion	N/A	N/A

Tejon Ranch has higher earnings, but lower revenue than CapitaLand.

Analyst Recommendations

This is a summary of recent ratings and price targets for Tejon Ranch and CapitaLand, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tejon Ranch	1	0	0	0	1.00
CapitaLand	0	0	0	0	0.00

Profitability

This table compares Tejon Ranch and CapitaLand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tejon Ranch	3.32%	0.35%	0.27%
CapitaLand	N/A	N/A	N/A

Risk & Volatility

Tejon Ranch has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, CapitaLand has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Summary

Tejon Ranch beats CapitaLand on 8 of the 10 factors compared between the two stocks.

About Tejon Ranch

Tejon Ranch Co., together with its subsidiaries, operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. The Commercial/Industrial Real Estate Development segment engages in the planning and permitting of land for development; construction of infrastructure projects, pre-leased buildings, and buildings to be leased or sold; and sale of land to third parties for their own development. It is also involved in the activities related to communications leases, a power plant lease, and landscape maintenance. This segment leases land to various auto service stations with convenience stores, fast-food operations, service diner-style restaurant, a motel, an antique shop, and a post office; various microwave repeater locations, radio and cellular transmitter sites, and fiber optic cable routes; and package of land for an electric power plant. The Resort/Residential Real Estate Development segment engages in land entitlement, planning, pre-construction engineering, stewardship, and conservation activities. The Mineral Resources segment includes oil and gas royalties, rock and aggregate royalties, and royalties from a cement operation leased to National Cement Company of California, Inc.; and the management of water assets and infrastructure projects. The Farming segment farms permanent crops, such as wine grapes, almonds, and pistachios in package of land. It also manages the farming of alfalfa and forage mix on package of land in the Antelope Valley; and leases package of land for growing vegetables, as well as almonds. The Ranch Operations segment provides game management and ancillary land services comprising grazing leases and filming, as well as various guided hunts. Tejon Ranch Co. was founded in 1843 and is based in Lebec, California.

About CapitaLand

CapitaLand is one of Asia’s largest real estate companies headquartered and listed in Singapore. The company leverages its significant asset base, design and development capabilities, active capital management strategies, and extensive market network and operational capabilities to develop high-quality real estate products and services. Its diversified global real estate portfolio includes integrated developments, shopping malls, serviced residences, offices and homes. The Group focuses on Singapore and China as our core markets, while it continues to expand in markets such as Vietnam and Indonesia. The company also has one of the largest real estate fund management businesses with assets located in Asia.