Cushman & Wakefield (NYSE:CWK – Get Free Report) and Transcontinental Realty Investors (NYSE:TCI – Get Free Report) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Cushman & Wakefield and Transcontinental Realty Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cushman & Wakefield | 0.64% | 15.90% | 4.10% |
| Transcontinental Realty Investors | 16.08% | -0.17% | -0.13% |
Insider and Institutional Ownership
95.6% of Cushman & Wakefield shares are held by institutional investors. 0.7% of Cushman & Wakefield shares are held by company insiders. Comparatively, 86.2% of Transcontinental Realty Investors shares are held by company 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cushman & Wakefield | 0 | 4 | 5 | 0 | 2.56 |
| Transcontinental Realty Investors | 1 | 0 | 0 | 0 | 1.00 |
Cushman & Wakefield currently has a consensus price target of $17.57, suggesting a potential upside of 54.20%. Given Cushman & Wakefield’s stronger consensus rating and higher probable upside, analysts clearly believe Cushman & Wakefield is more favorable than Transcontinental Realty Investors.
Earnings & Valuation
This table compares Cushman & Wakefield and Transcontinental Realty Investors”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cushman & Wakefield | $10.29 billion | 0.26 | $88.20 million | $0.29 | 39.29 |
| Transcontinental Realty Investors | $49.06 million | 8.08 | $13.80 million | $0.94 | 48.07 |
Cushman & Wakefield has higher revenue and earnings than Transcontinental Realty Investors. Cushman & Wakefield 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.
Risk and Volatility
Cushman & Wakefield has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.
Summary
Cushman & Wakefield beats Transcontinental Realty Investors on 9 of the 14 factors compared between the two stocks.
About Cushman & Wakefield
Cushman & Wakefield Plc engages in the provision of commercial real estate services. It operates through the following geographical segments: Americas, Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC). The Americas segment consists of operations located in the United States, Canada and key markets in Latin America. The EMEA segment includes operations in the UK, France, Netherlands and other markets in Europe and the Middle East. The APAC segment comprises of operations in Australia, Singapore, China and other markets in the Asia Pacific region. The company was founded in 1917 and is headquartered in London, the United Kingdom.
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.
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