Comparing Transcontinental Realty Investors (NYSE:TCI) and Essential Properties Realty Trust (NYSE:EPRT)

Transcontinental Realty Investors (NYSE:TCI) and Essential Properties Realty Trust (NYSE:EPRT) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Risk & Volatility

Transcontinental Realty Investors has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Essential Properties Realty Trust has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Transcontinental Realty Investors and Essential Properties Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	9.91%	0.59%	0.47%
Essential Properties Realty Trust	48.12%	6.28%	3.96%

Earnings and Valuation

This table compares Transcontinental Realty Investors and Essential Properties Realty Trust’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$47.09 million	5.45	$5.94 million	$0.58	51.26
Essential Properties Realty Trust	$402.16 million	12.96	$190.71 million	$1.23	24.16

Essential Properties Realty Trust has higher revenue and earnings than Transcontinental Realty Investors. Essential Properties Realty Trust is trading at a lower price-to-earnings ratio than Transcontinental Realty Investors, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Transcontinental Realty Investors and Essential Properties Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	0	0	0	N/A
Essential Properties Realty Trust	0	2	10	0	2.83

Essential Properties Realty Trust has a consensus price target of $30.54, indicating a potential upside of 2.76%. Given Essential Properties Realty Trust’s higher probable upside, analysts plainly believe Essential Properties Realty Trust is more favorable than Transcontinental Realty Investors.

Insider & Institutional Ownership

97.0% of Essential Properties Realty Trust shares are owned by institutional investors. 85.6% of Transcontinental Realty Investors shares are owned by company insiders. Comparatively, 0.8% of Essential Properties Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Essential Properties Realty Trust beats Transcontinental Realty Investors on 11 of the 13 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 Essential Properties Realty Trust

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. 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. The company was founded in 2016 and is headquartered in Princeton, New Jersey.