Contrasting Boston Omaha (NYSE:BOC) & TPG RE Finance Trust (NYSE:TRTX)

TPG RE Finance Trust (NYSE:TRTX) and Boston Omaha (NYSE:BOC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for TPG RE Finance Trust and Boston Omaha, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	0	2	4	0	2.67
Boston Omaha	1	0	0	0	1.00

TPG RE Finance Trust currently has a consensus target price of $9.83, suggesting a potential upside of 16.61%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe TPG RE Finance Trust is more favorable than Boston Omaha.

Profitability

This table compares TPG RE Finance Trust and Boston Omaha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	19.38%	6.91%	1.74%
Boston Omaha	-12.10%	-2.57%	-1.94%

Valuation & Earnings

This table compares TPG RE Finance Trust and Boston Omaha”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$332.58 million	1.96	$60.32 million	$0.63	13.39
Boston Omaha	$114.38 million	3.55	-$12.43 million	($0.44)	-30.40

TPG RE Finance Trust has higher revenue and earnings than Boston Omaha. Boston Omaha 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.

Insider and Institutional Ownership

57.1% of TPG RE Finance Trust shares are owned by institutional investors. Comparatively, 60.4% of Boston Omaha shares are owned by institutional investors. 3.0% of TPG RE Finance Trust shares are owned by insiders. Comparatively, 23.2% of Boston Omaha shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

TPG RE Finance Trust has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Boston Omaha has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Summary

TPG RE Finance Trust beats Boston Omaha on 11 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 multifamily, life science, mixed-use, hospitality, self storage, 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 Boston Omaha

Boston Omaha Corporation, together with its subsidiaries, engages in the outdoor billboard advertising business in the southeast United States. It is also involved in the surety insurance and related brokerage, broadband, and asset management businesses. The company was formerly known as REO Plus, Inc. and changed its name to Boston Omaha Corporation in March 2015. Boston Omaha Corporation was incorporated in 2009 and is headquartered in Omaha, Nebraska.