Contrasting Exp World (NASDAQ:AGNT) and Tejon Ranch (NYSE:TRC)

Tejon Ranch (NYSE:TRC) and Exp World (NASDAQ:AGNT) are both small-cap real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares Tejon Ranch and Exp World’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tejon Ranch	10.62%	1.23%	0.95%
Exp World	-0.35%	-5.43%	-2.89%

Volatility and Risk

Tejon Ranch has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Exp World has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500.

Institutional and Insider Ownership

60.6% of Tejon Ranch shares are held by institutional investors. Comparatively, 27.2% of Exp World shares are held by institutional investors. 21.9% of Tejon Ranch shares are held by insiders. Comparatively, 26.6% of Exp World shares are held 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.

Earnings and Valuation

This table compares Tejon Ranch and Exp World”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tejon Ranch	$49.59 million	8.84	$80,000.00	$0.23	70.57
Exp World	$4.77 billion	0.14	-$22.71 million	($0.11)	-37.82

Tejon Ranch has higher earnings, but lower revenue than Exp World. Exp World is trading at a lower price-to-earnings ratio than Tejon Ranch, 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 Tejon Ranch and Exp World, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tejon Ranch	0	1	0	0	2.00
Exp World	2	2	2	0	2.00

Exp World has a consensus target price of $5.38, indicating a potential upside of 29.21%. Given Exp World’s higher possible upside, analysts clearly believe Exp World is more favorable than Tejon Ranch.

Summary

Tejon Ranch beats Exp World on 7 of the 12 factors compared between the two stocks.

About Tejon Ranch

Tejon Ranch Co., together with its subsidiaries, operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. The Commercial/Industrial Real Estate Development segment engages in the planning and permitting of land for development; construction of infrastructure projects, pre-leased buildings, and buildings to be leased or sold; and sale of land to third parties for their own development. It is also involved in the activities related to communications leases, a power plant lease, and landscape maintenance. This segment leases land to various auto service stations with convenience stores, fast-food operations, service diner-style restaurant, a motel, an antique shop, and a post office; various microwave repeater locations, radio and cellular transmitter sites, and fiber optic cable routes; and package of land for an electric power plant. The Resort/Residential Real Estate Development segment engages in land entitlement, planning, pre-construction engineering, stewardship, and conservation activities. The Mineral Resources segment includes oil and gas royalties, rock and aggregate royalties, and royalties from a cement operation leased to National Cement Company of California, Inc.; and the management of water assets and infrastructure projects. The Farming segment farms permanent crops, such as wine grapes, almonds, and pistachios in package of land. It also manages the farming of alfalfa and forage mix on package of land in the Antelope Valley; and leases package of land for growing vegetables, as well as almonds. The Ranch Operations segment provides game management and ancillary land services comprising grazing leases and filming, as well as various guided hunts. Tejon Ranch Co. was founded in 1843 and is based in Lebec, California.

About Exp World

eXp World Holdings, Inc., together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through North American Realty, International Realty, Virbela, and Other Affiliated Services segments. It provides Virbela, a cloud-based technologies that provides data, lead generation, and marketing tools for real estate agents and employees. In addition, the company offers SUCCESS print magazine, SUCCESS.com portal, SUCCESS newsletters, SUCCESS podcasts, SUCCESS plus, SUCCESS speakers bureau, and SUCCESS coaching, podcasts, and digital training courses. It operates in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, and Poland. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is based in Bellingham, Washington.