Star (NASDAQ:STHO – Get Free Report) and Tejon Ranch (NYSE:TRC – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Valuation & Earnings
This table compares Star and Tejon Ranch”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star | $57.67 million | 1.84 | -$64.25 million | $1.21 | 7.28 |
| Tejon Ranch | $56.84 million | 7.78 | $80,000.00 | $0.23 | 71.20 |
Profitability
This table compares Star and Tejon Ranch’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star | 14.77% | -0.90% | -0.45% |
| Tejon Ranch | 10.62% | 1.23% | 0.95% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Star and Tejon Ranch, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star | 0 | 1 | 0 | 0 | 2.00 |
| Tejon Ranch | 0 | 1 | 0 | 0 | 2.00 |
Insider and Institutional Ownership
89.3% of Star shares are owned by institutional investors. Comparatively, 60.6% of Tejon Ranch shares are owned by institutional investors. 4.1% of Star shares are owned by company insiders. Comparatively, 21.9% of Tejon Ranch shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Star has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Tejon Ranch has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.
Summary
Tejon Ranch beats Star on 6 of the 11 factors compared between the two stocks.
About Star
Star Holdings engages in the non-ground lease related commercial real estate businesses in the United States. Its portfolio primarily comprises interest in the Asbury Park Waterfront and Magnolia Green residential development projects. Star Holdings is based in New York, New York.
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.
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