Transcontinental Realty Investors (NYSE:TCI) & Pebblebrook Hotel Trust (NYSE:PEB) Critical Review

Pebblebrook Hotel Trust (NYSE:PEB) and Transcontinental Realty Investors (NYSE:TCI) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Profitability

This table compares Pebblebrook Hotel Trust and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pebblebrook Hotel Trust	0.25%	0.13%	0.06%
Transcontinental Realty Investors	6.55%	0.38%	0.30%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pebblebrook Hotel Trust and Transcontinental Realty Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pebblebrook Hotel Trust	1	5	1	0	2.00
Transcontinental Realty Investors	0	0	0	0	0.00

Pebblebrook Hotel Trust currently has a consensus target price of $12.28, indicating a potential upside of 24.62%. Given Pebblebrook Hotel Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Pebblebrook Hotel Trust is more favorable than Transcontinental Realty Investors.

Volatility & Risk

Pebblebrook Hotel Trust has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares Pebblebrook Hotel Trust and Transcontinental Realty Investors”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pebblebrook Hotel Trust	$1.46 billion	0.80	-$78.02 million	($0.48)	-20.53
Transcontinental Realty Investors	$44.91 million	7.30	$5.94 million	$0.91	41.71

Transcontinental Realty Investors has lower revenue, but higher earnings than Pebblebrook Hotel Trust. Pebblebrook Hotel 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.

Summary

Transcontinental Realty Investors beats Pebblebrook Hotel Trust on 7 of the 12 factors compared between the two stocks.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.

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.