Analyzing TPG RE Finance Trust (NYSE:TRTX) and Sotherly Hotels (NASDAQ:SOHO)


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.

Analyst Ratings

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
Sotherly Hotels 0 0 0 0 N/A

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.

Profitability

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%
Sotherly Hotels -13.95% -78.88% -4.47%

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.

Summary

TPG RE Finance Trust beats Sotherly Hotels on 13 of the 14 factors compared between the two stocks.

About TPG RE Finance Trust

(Get Rating)

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

(Get Rating)

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Currently, the Company’s portfolio consists of investments in twelve hotel properties, comprising 3,156 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide, Hyatt Hotels Corporation, and Marriott International, Inc. brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.



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