Alexander & Baldwin Holdings (ALEX) and Transcontinental Realty Investors (TCI) Head-To-Head Review
Transcontinental Realty Investors (NYSE: TCI) and Alexander & Baldwin Holdings (NYSE:ALEX) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitabiliy, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
0.3% of Transcontinental Realty Investors shares are held by institutional investors. Comparatively, 75.7% of Alexander & Baldwin Holdings shares are held by institutional investors. 81.0% of Transcontinental Realty Investors shares are held by company insiders. Comparatively, 7.6% of Alexander & Baldwin Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Transcontinental Realty Investors and Alexander & Baldwin Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Transcontinental Realty Investors||-1.29%||-0.70%||-0.13%|
|Alexander & Baldwin Holdings||0.90%||4.22%||2.34%|
Earnings & Valuation
This table compares Transcontinental Realty Investors and Alexander & Baldwin Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Transcontinental Realty Investors||$121.07 million||1.90||$43.45 million||($0.28)||-94.32|
|Alexander & Baldwin Holdings||$389.30 million||5.27||$99.50 million||$0.11||379.64|
Alexander & Baldwin Holdings has higher revenue and earnings than Transcontinental Realty Investors. Transcontinental Realty Investors is trading at a lower price-to-earnings ratio than Alexander & Baldwin Holdings, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Transcontinental Realty Investors and Alexander & Baldwin Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Transcontinental Realty Investors||0||3||0||0||2.00|
|Alexander & Baldwin Holdings||0||1||1||0||2.50|
Transcontinental Realty Investors presently has a consensus target price of $20.33, suggesting a potential downside of 23.01%. Alexander & Baldwin Holdings has a consensus target price of $47.00, suggesting a potential upside of 12.55%. Given Alexander & Baldwin Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Alexander & Baldwin Holdings is more favorable than Transcontinental Realty Investors.
Alexander & Baldwin Holdings pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Transcontinental Realty Investors does not pay a dividend. Alexander & Baldwin Holdings pays out 254.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Transcontinental Realty Investors has increased its dividend for 3 consecutive years.
Risk and Volatility
Transcontinental Realty Investors has a beta of -0.14, meaning that its stock price is 114% less volatile than the S&P 500. Comparatively, Alexander & Baldwin Holdings has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.
Alexander & Baldwin Holdings beats Transcontinental Realty Investors on 13 of the 16 factors compared between the two stocks.
About Transcontinental Realty Investors
Transcontinental Realty Investors, Inc. is an externally advised and managed real estate investment company that owns a portfolio of income-producing properties and land held for development. The Company’s segments are Commercial Properties, Apartments, Land and Other. Its portfolio of income-producing properties includes residential apartment communities, office buildings and other commercial properties. It acquires land mainly in in-fill locations or suburban markets. The Company’s income-producing properties consist of approximately eight commercial properties, including five office buildings, two retail properties and an industrial warehouse, comprising in aggregate approximately 1.9 million square feet; a golf course comprising approximately 96.09 acres, and approximately 50 residential apartment communities comprising over 7,980 units, excluding apartments being developed. In addition, it owns approximately 3,660 acres of land held for development.
About Alexander & Baldwin Holdings
Alexander & Baldwin, Inc. (A&B) is a real estate company. The Company operates through three segments: Commercial Real Estate, Land Operations, and Materials and Construction. In addition to its 15 retail centers in Hawaii, the Company owned seven industrial assets, seven office properties and a portfolio of urban ground leases comprising 106 acres in Hawaii, as of December 31, 2016. On the United States mainland, the Company owned seven remaining commercial assets, as of December 31, 2016. The Commercial Real Estate segment owns, operates and manages retail, industrial and office properties in Hawaii and on the Mainland. The Land Operations segment manages the Company’s land and real estate-related assets and deploys these assets to their use. The Materials and Construction segment performs asphalt paving as prime contractor and subcontractor; imports and sells liquid asphalt; mines, processes and sells basalt aggregate, and produces and sells asphaltic and ready-mix concrete.
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