Critical Survey: Transcontinental Realty Investors (NYSE:TCI) versus New World Development (OTCMKTS:NDVLY)

Transcontinental Realty Investors (NYSE:TCI) and New World Development (OTCMKTS:NDVLY) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Valuation & Earnings

This table compares Transcontinental Realty Investors and New World Development”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$49.06 million	7.70	$13.80 million	$1.09	40.12
New World Development	$3.55 billion	0.13	-$1.97 billion	N/A	N/A

Transcontinental Realty Investors has higher earnings, but lower revenue than New World Development.

Analyst Ratings

This is a breakdown of recent recommendations for Transcontinental Realty Investors and New World Development, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	1	0	0	0	1.00
New World Development	0	0	0	0	0.00

Risk & Volatility

Transcontinental Realty Investors has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, New World Development has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares Transcontinental Realty Investors and New World Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	18.94%	-0.02%	-0.02%
New World Development	N/A	N/A	N/A

Summary

Transcontinental Realty Investors beats New World Development on 5 of the 8 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 New World Development

New World Development Company Limited, an investment holding company, operates in the property development and investment business in Hong Kong and Mainland China. Its property portfolio includes residential, retail, office, and industrial properties. The company also provides commercial aircraft leasing services; operates expressways; and constructs residential and commercial projects, as well as whole life, term, dread disease, medical, disability, and accident insurance products. In addition, it is involved in the duty-free operation and general trading, civil engineering, loyalty program, modern logistics, land development, marketing, promotion, fashion retailing and trading, and piling and ground investigation businesses; and development and operation of sports park. Further, the company manages Hong Kong convention and exhibition centre; operates toll roads, club houses, golf and tennis academies, and shopping malls; operates department stores; and provides information technology, endoscopic, healthcare, training course, ticketing, financial, project management and consultancy, retail and corporate sales, management, culture and recreation, advertising, building construction, estate agency, wellness and rehabilitation, endoscopic, carpark management, supply chain management, and catering services, as well as property management, business, and investment consultancy services. Additionally, it offers elderly residential places and services; property agency, management, and consultancy services; and undertakes foundation works. The company also invests in, owns, and operates hotel properties in Hong Kong, Mainland China, and the Southeast Asia. New World Development Company Limited was incorporated in 1970 and is headquartered in Central, Hong Kong.