Critical Review: TPG RE Finance Trust (NYSE:TRTX) vs. Henderson Land Development (OTCMKTS:HLDCY)

Henderson Land Development (OTCMKTS:HLDCY) and TPG RE Finance Trust (NYSE:TRTX) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Dividends

Henderson Land Development pays an annual dividend of $0.16 per share and has a dividend yield of 4.3%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.2%. TPG RE Finance Trust pays out 152.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Henderson Land Development has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Henderson Land Development and TPG RE Finance Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henderson Land Development	0	0	1	0	3.00
TPG RE Finance Trust	0	2	4	0	2.67

TPG RE Finance Trust has a consensus target price of $10.00, indicating a potential upside of 17.16%. Given TPG RE Finance Trust’s higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than Henderson Land Development.

Valuation and Earnings

This table compares Henderson Land Development and TPG RE Finance Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henderson Land Development	$3.30 billion	5.44	$725.28 million	N/A	N/A
TPG RE Finance Trust	$332.58 million	1.98	$60.32 million	$0.63	13.55

Henderson Land Development has higher revenue and earnings than TPG RE Finance Trust.

Insider & Institutional Ownership

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

Profitability

This table compares Henderson Land Development and TPG RE Finance Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henderson Land Development	N/A	N/A	N/A
TPG RE Finance Trust	19.38%	6.91%	1.74%

Summary

TPG RE Finance Trust beats Henderson Land Development on 9 of the 14 factors compared between the two stocks.

About Henderson Land Development

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Hotel Room Operation, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Hotel Room Operation segment operates hotel properties. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials. It also engages in food and beverage, and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

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.