TPG RE Finance Trust (NYSE:TRTX – Get Rating) and Sotherly Hotels (NASDAQ:SOHO – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
This is a summary of recent ratings and recommmendations for TPG RE Finance Trust and Sotherly Hotels, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TPG RE Finance Trust||0||1||2||1||3.00|
TPG RE Finance Trust presently has a consensus price target of $13.50, indicating a potential upside of 24.20%. Sotherly Hotels has a consensus price target of $2.00, indicating a potential downside of 5.66%. Given TPG RE Finance Trust’s higher probable upside, research analysts clearly believe TPG RE Finance Trust is more favorable than Sotherly Hotels.
Volatility & Risk
This table compares TPG RE Finance Trust and Sotherly Hotels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TPG RE Finance Trust||53.54%||10.60%||2.92%|
Insider and Institutional Ownership
71.5% of TPG RE Finance Trust shares are held by institutional investors. Comparatively, 23.5% of Sotherly Hotels shares are held by institutional investors. 2.2% of TPG RE Finance Trust shares are held by company insiders. Comparatively, 13.4% of Sotherly Hotels shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares TPG RE Finance Trust and Sotherly Hotels’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TPG RE Finance Trust||$240.72 million||3.49||$138.55 million||$0.81||13.42|
|Sotherly Hotels||$127.59 million||0.30||-$26.22 million||($1.64)||-1.29|
TPG RE Finance Trust has higher revenue and earnings than Sotherly Hotels. Sotherly Hotels is trading at a lower price-to-earnings ratio than TPG RE Finance Trust, indicating that it is currently the more affordable of the two stocks.
TPG RE Finance Trust beats Sotherly Hotels on 13 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 office, multifamily, life science, mixed-use, hospitality, 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 Sotherly Hotels
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Currently, the Company's portfolio consists of investments in twelve hotel properties, comprising 3,156 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide, Hyatt Hotels Corporation, and Marriott International, Inc. brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.
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