Transcontinental Realty Investors (NYSE:TCI) versus Phillips Edison & Company, Inc. (NASDAQ:PECO) Financial Comparison

Transcontinental Realty Investors (NYSE:TCI) and Phillips Edison & Company, Inc. (NASDAQ:PECO) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Transcontinental Realty Investors and Phillips Edison & Company, Inc., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	0	0	0	0.00
Phillips Edison & Company, Inc.	0	3	3	0	2.50

Phillips Edison & Company, Inc. has a consensus price target of $39.50, suggesting a potential upside of 8.73%. Given Phillips Edison & Company, Inc.’s stronger consensus rating and higher possible upside, analysts plainly believe Phillips Edison & Company, Inc. is more favorable than Transcontinental Realty Investors.

Risk and Volatility

Transcontinental Realty Investors has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Earnings & Valuation

This table compares Transcontinental Realty Investors and Phillips Edison & Company, Inc.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$49.90 million	4.47	$5.94 million	$0.37	69.85
Phillips Edison & Company, Inc.	$610.12 million	7.30	$56.85 million	$0.46	78.98

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

Profitability

This table compares Transcontinental Realty Investors and Phillips Edison & Company, Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	6.55%	0.38%	0.30%
Phillips Edison & Company, Inc.	9.03%	2.22%	1.18%

Insider and Institutional Ownership

80.7% of Phillips Edison & Company, Inc. shares are owned by institutional investors. 86.2% of Transcontinental Realty Investors shares are owned by company insiders. Comparatively, 8.0% of Phillips Edison & Company, Inc. 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.

Summary

Phillips Edison & Company, Inc. beats Transcontinental Realty Investors on 13 of the 14 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 Phillips Edison & Company, Inc.

Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.