Analyzing Henderson Land Development (OTCMKTS:HLDCY) & TPG RE Finance Trust (NYSE:TRTX)

TPG RE Finance Trust (NYSE:TRTX) and Henderson Land Development (OTCMKTS:HLDCY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Valuation & Earnings

This table compares TPG RE Finance Trust and Henderson Land Development”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$142.63 million	4.29	$60.32 million	$0.54	14.77
Henderson Land Development	$3.30 billion	5.40	$725.28 million	N/A	N/A

Henderson Land Development has higher revenue and earnings than TPG RE Finance Trust.

Dividends

TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 12.0%. Henderson Land Development pays an annual dividend of $0.15 per share and has a dividend yield of 4.1%. TPG RE Finance Trust pays out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares TPG RE Finance Trust and Henderson Land Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	17.03%	6.85%	1.66%
Henderson Land Development	N/A	N/A	N/A

Institutional & Insider Ownership

57.1% of TPG RE Finance Trust shares are owned by institutional investors. 3.0% of TPG RE Finance Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TPG RE Finance Trust and Henderson Land Development, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	0	2	4	0	2.67
Henderson Land Development	0	0	1	0	3.00

TPG RE Finance Trust currently has a consensus price target of $10.00, indicating a potential upside of 25.38%. Given TPG RE Finance Trust’s higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than Henderson Land Development.

Volatility & Risk

TPG RE Finance Trust has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Henderson Land Development has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Summary

TPG RE Finance Trust beats Henderson Land Development on 9 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 multifamily, life science, mixed-use, hospitality, self storage, 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 Henderson Land Development

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Hotel Room Operation, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Hotel Room Operation segment operates hotel properties. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials. It also engages in food and beverage, and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.