Tejon Ranch (NYSE:TRC) and Office Properties Income Trust (NASDAQ:OPI) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Volatility and Risk
Tejon Ranch has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Office Properties Income Trust has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Valuation & Earnings
This table compares Tejon Ranch and Office Properties Income Trust's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Tejon Ranch | $49.52 million | 8.65 | $10.58 million | $0.40 | 40.80 |
Office Properties Income Trust | $678.40 million | 1.80 | $30.33 million | $6.01 | 4.21 |
Office Properties Income Trust has higher revenue and earnings than Tejon Ranch. Office Properties Income Trust is trading at a lower price-to-earnings ratio than Tejon Ranch, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
67.3% of Tejon Ranch shares are held by institutional investors. Comparatively, 75.0% of Office Properties Income Trust shares are held by institutional investors. 20.9% of Tejon Ranch shares are held by company insiders. Comparatively, 1.7% of Office Properties Income Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Tejon Ranch and Office Properties Income Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Tejon Ranch | 0 | 0 | 0 | 0 | N/A |
Office Properties Income Trust | 1 | 3 | 1 | 0 | 2.00 |
Office Properties Income Trust has a consensus price target of $28.75, indicating a potential upside of 13.68%. Given Office Properties Income Trust's higher probable upside, analysts clearly believe Office Properties Income Trust is more favorable than Tejon Ranch.
Profitability
This table compares Tejon Ranch and Office Properties Income Trust's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Tejon Ranch | 18.60% | 2.05% | 1.69% |
Office Properties Income Trust | 12.20% | 4.38% | 1.81% |
Summary
Office Properties Income Trust beats Tejon Ranch on 9 of the 13 factors compared between the two stocks.