Financial Survey: TPG RE Finance Trust (TRTX) & Regional Management Corp. (RM)
TPG RE Finance Trust (NASDAQ: TRTX) and Regional Management Corp. (NYSE:RM) are both small-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.
This table compares TPG RE Finance Trust and Regional Management Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TPG RE Finance Trust||48.73%||10.27%||3.73%|
|Regional Management Corp.||10.37%||12.98%||3.88%|
Earnings and Valuation
This table compares TPG RE Finance Trust and Regional Management Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TPG RE Finance Trust||N/A||N/A||N/A||N/A||N/A|
|Regional Management Corp.||$246.92 million||1.16||$68.46 million||$2.28||10.79|
Regional Management Corp. has higher revenue and earnings than TPG RE Finance Trust.
Institutional and Insider Ownership
86.8% of Regional Management Corp. shares are owned by institutional investors. 9.5% of Regional Management Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for TPG RE Finance Trust and Regional Management Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TPG RE Finance Trust||0||2||3||0||2.60|
|Regional Management Corp.||0||5||1||0||2.17|
TPG RE Finance Trust presently has a consensus price target of $21.20, indicating a potential upside of 7.23%. Regional Management Corp. has a consensus price target of $25.83, indicating a potential upside of 5.06%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe TPG RE Finance Trust is more favorable than Regional Management Corp..
Regional Management Corp. beats TPG RE Finance Trust on 5 of the 9 factors compared between the two stocks.
About TPG RE Finance Trust
TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.
About Regional Management Corp.
Regional Management Corp. is a diversified consumer finance company. The Company provides an array of loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders. Its products include small loans, large loans, automobile loans, retail loans, and optional payment and collateral protection insurance products. It offers small loans ranging from $500 to $2,500, through its branches. It offers large installment loans with cash proceeds to the customer ranging from $2,501 to $20,000. As of December 31, 2016, automobile loans were offered in amounts up to $27,500. As of December 31, 2016, retail loans were indirect installment loans structured as retail installment sales contracts that were offered in amounts of up to $7,500. Optional Payment and Collateral Protection Insurance Products offer customers a number of optional payment and collateral protection insurance products.
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