Head-To-Head Review: TPG RE Finance Trust (NYSE:TRTX) & Universal Health Realty Income Trust (NYSE:UHT)

TPG RE Finance Trust (NYSE:TRTX) and Universal Health Realty Income Trust (NYSE:UHT) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for TPG RE Finance Trust and Universal Health Realty Income Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	1	0	5	0	2.67
Universal Health Realty Income Trust	0	0	0	0	0.00

TPG RE Finance Trust presently has a consensus target price of $8.92, indicating a potential upside of 6.72%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, analysts plainly believe TPG RE Finance Trust is more favorable than Universal Health Realty Income Trust.

Dividends

TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.5%. Universal Health Realty Income Trust pays an annual dividend of $2.94 per share and has a dividend yield of 7.7%. TPG RE Finance Trust pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust pays out 224.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG RE Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

TPG RE Finance Trust has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Insider & Institutional Ownership

57.1% of TPG RE Finance Trust shares are owned by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are owned by institutional investors. 2.5% of TPG RE Finance Trust shares are owned by company insiders. Comparatively, 2.2% of Universal Health Realty Income Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares TPG RE Finance Trust and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	19.65%	-7.50%	-2.19%
Universal Health Realty Income Trust	18.41%	9.44%	3.07%

Valuation & Earnings

This table compares TPG RE Finance Trust and Universal Health Realty Income Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$390.25 million	1.73	-$116.63 million	$0.69	12.11
Universal Health Realty Income Trust	$95.57 million	5.53	$15.40 million	$1.31	29.15

Universal Health Realty Income Trust has lower revenue, but higher earnings than TPG RE Finance Trust. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Summary

TPG RE Finance Trust beats Universal Health Realty Income Trust on 9 of the 16 factors compared between the two stocks.

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.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.