Financial Comparison: Douglas Elliman (NYSE:DOUG) versus Tejon Ranch (NYSE:TRC)

Douglas Elliman (NYSE:DOUG) and Tejon Ranch (NYSE:TRC) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Douglas Elliman has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Tejon Ranch has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Earnings and Valuation

This table compares Douglas Elliman and Tejon Ranch”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Elliman	$995.63 million	0.23	-$76.32 million	($0.70)	-3.62
Tejon Ranch	$41.89 million	10.48	$2.69 million	$0.12	136.01

Tejon Ranch has lower revenue, but higher earnings than Douglas Elliman. Douglas Elliman is trading at a lower price-to-earnings ratio than Tejon Ranch, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

59.6% of Douglas Elliman shares are held by institutional investors. Comparatively, 60.6% of Tejon Ranch shares are held by institutional investors. 6.8% of Douglas Elliman shares are held by company insiders. Comparatively, 22.4% of Tejon Ranch shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Douglas Elliman and Tejon Ranch, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Elliman	1	0	0	0	1.00
Tejon Ranch	0	1	0	0	2.00

Profitability

This table compares Douglas Elliman and Tejon Ranch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Douglas Elliman	-5.76%	-3.19%	-0.93%
Tejon Ranch	6.41%	0.61%	0.48%

Summary

Tejon Ranch beats Douglas Elliman on 10 of the 12 factors compared between the two stocks.

About Douglas Elliman

Douglas Elliman Inc. owns Douglas Elliman Realty, LLC, operating as a residential brokerage company in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.

About Tejon Ranch

Tejon Ranch Co., together with its subsidiaries, operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. The Commercial/Industrial Real Estate Development segment engages in the planning and permitting of land for development; construction of infrastructure projects, pre-leased buildings, and buildings to be leased or sold; and sale of land to third parties for their own development. It is also involved in the activities related to communications leases, a power plant lease, and landscape maintenance. This segment leases land to various auto service stations with convenience stores, fast-food operations, service diner-style restaurant, a motel, an antique shop, and a post office; various microwave repeater locations, radio and cellular transmitter sites, and fiber optic cable routes; and package of land for an electric power plant. The Resort/Residential Real Estate Development segment engages in land entitlement, planning, pre-construction engineering, stewardship, and conservation activities. The Mineral Resources segment includes oil and gas royalties, rock and aggregate royalties, and royalties from a cement operation leased to National Cement Company of California, Inc.; and the management of water assets and infrastructure projects. The Farming segment farms permanent crops, such as wine grapes, almonds, and pistachios in package of land. It also manages the farming of alfalfa and forage mix on package of land in the Antelope Valley; and leases package of land for growing vegetables, as well as almonds. The Ranch Operations segment provides game management and ancillary land services comprising grazing leases and filming, as well as various guided hunts. Tejon Ranch Co. was founded in 1843 and is based in Lebec, California.