Head to Head Survey: Centerspace (NYSE:CSR) and Transcontinental Realty Investors (NYSE:TCI)

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

Volatility & Risk

Transcontinental Realty Investors has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

79.0% of Centerspace shares are held by institutional investors. 85.6% of Transcontinental Realty Investors shares are held by insiders. Comparatively, 0.9% of Centerspace shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Transcontinental Realty Investors and Centerspace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	0	0	0	N/A
Centerspace	0	3	4	0	2.57

Centerspace has a consensus target price of $65.57, indicating a potential upside of 16.51%. Given Centerspace’s higher possible upside, analysts clearly believe Centerspace is more favorable than Transcontinental Realty Investors.

Earnings & Valuation

This table compares Transcontinental Realty Investors and Centerspace’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$49.90 million	N/A	$5.94 million	$0.69	54.88
Centerspace	$261.31 million	3.24	$41.97 million	$2.33	24.15

Centerspace has higher revenue and earnings than Transcontinental Realty Investors. Centerspace 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.

Profitability

This table compares Transcontinental Realty Investors and Centerspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	11.90%	0.70%	0.55%
Centerspace	15.81%	4.76%	2.15%

Summary

Centerspace beats Transcontinental Realty Investors on 10 of the 12 factors compared between the two stocks.

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.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.