CBRE Group (NYSE:CBRE) vs. Transcontinental Realty Investors (NYSE:TCI) Head to Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	16.08%	-0.17%	-0.13%
CBRE Group	3.08%	26.31%	7.66%

Risk and Volatility

Transcontinental Realty Investors has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, CBRE Group has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Earnings & Valuation

This table compares Transcontinental Realty Investors and CBRE Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$47.32 million	8.93	$13.80 million	$0.94	52.02
CBRE Group	$45.01 billion	0.79	$1.16 billion	$4.67	26.51

CBRE Group has higher revenue and earnings than Transcontinental Realty Investors. CBRE Group 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.

Institutional and Insider Ownership

98.4% of CBRE Group shares are held by institutional investors. 86.2% of Transcontinental Realty Investors shares are held by company insiders. Comparatively, 0.5% of CBRE Group 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 Ratings

This is a summary of current ratings and price targets for Transcontinental Realty Investors and CBRE Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	1	0	0	0	1.00
CBRE Group	0	1	9	0	2.90

CBRE Group has a consensus target price of $185.44, suggesting a potential upside of 49.81%. Given CBRE Group’s stronger consensus rating and higher probable upside, analysts clearly believe CBRE Group is more favorable than Transcontinental Realty Investors.

Summary

CBRE Group beats Transcontinental Realty Investors on 10 of the 14 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 CBRE Group

CBRE Group, Inc. operates as a commercial real estate services and investment company in the United States, the United Kingdom, and internationally. The Advisory Services segment offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing of offices, and industrial and retail space; clients fully integrated property sales services under the CBRE Capital Markets brand; clients commercial mortgage and structured financing services; originates and sells commercial mortgage loans; property management services, such as marketing, building engineering, accounting, and financial services on a contractual basis for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment provides facilities management, including day-to-day management of client-occupied space, headquarters, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, and distribution facilities and retail space; and project management services comprising building consulting, program, and project and cost management services under the Turner & Townsend brand name. The Real Estate Investments segment offers investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services, such as real estate development and investment activities under the Trammell Crow Company and Telford Homes brands to users and investors in commercial real estate, and for their own account. CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.