TPG RE Finance Trust (NYSE:TRTX – Get Rating) and Sotherly Hotels (NASDAQ:SOHO – Get Rating) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Valuation and Earnings
This table compares TPG RE Finance Trust and Sotherly Hotels’ 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||$240.72 million||3.49||$138.55 million||$0.81||13.42|
|Sotherly Hotels||$127.59 million||0.30||-$26.22 million||($1.64)||-1.29|
TPG RE Finance Trust has higher revenue and earnings than Sotherly Hotels. Sotherly Hotels is trading at a lower price-to-earnings ratio than TPG RE Finance Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
TPG RE Finance Trust has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Sotherly Hotels has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for TPG RE Finance Trust and Sotherly Hotels, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TPG RE Finance Trust||0||1||2||1||3.00 p.m|
TPG RE Finance Trust currently has a consensus target price of $13.50, suggesting a potential upside of 24.20%. Sotherly Hotels has a consensus target price of $2.00, suggesting a potential downside of 5.66%. Given TPG RE Finance Trust’s higher probable upside, research analysts clearly believe TPG RE Finance Trust is more favorable than Sotherly Hotels.
This table compares TPG RE Finance Trust and Sotherly Hotels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TPG RE Finance Trust||53.54%||10.60%||2.92%|
Insider and Institutional Ownership
71.5% of TPG RE Finance Trust shares are owned by institutional investors. Comparatively, 23.5% of Sotherly Hotels shares are owned by institutional investors. 2.2% of TPG RE Finance Trust shares are owned by insiders. Comparatively, 13.4% of Sotherly Hotels shares are owned 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.
TPG RE Finance Trust beats Sotherly Hotels on 13 of the 14 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 office, multifamily, life science, mixed-use, hospitality, 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 Sotherly Hotels
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