Reviewing Tejon Ranch (NYSE:TRC) and Ayala Land (OTCMKTS:AYAAF)

Ayala Land (OTCMKTS:AYAAF) and Tejon Ranch (NYSE:TRC) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ayala Land	N/A	N/A	N/A	$0.97	0.26
Tejon Ranch	$49.59 million	8.90	$80,000.00	$0.23	71.04

Tejon Ranch has higher revenue and earnings than Ayala Land. Ayala Land 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

18.8% of Ayala Land shares are held by institutional investors. Comparatively, 60.6% of Tejon Ranch shares are held by institutional investors. 21.9% of Tejon Ranch shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ayala Land and Tejon Ranch, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ayala Land	0	0	0	0	0.00
Tejon Ranch	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ayala Land	N/A	N/A	N/A
Tejon Ranch	10.62%	1.23%	0.95%

Summary

Tejon Ranch beats Ayala Land on 8 of the 9 factors compared between the two stocks.

About Ayala Land

Ayala Land, Inc. operates as a property developer in the Philippines. It operates through Property Developments, International, Shopping Centers, Offices, Hotels and Resorts, Construction, and Property Management and Others segments. The company sells high-end and upper middle-income residential lots and units, affordable housing units and lots, and economic housing and leisure community developments; leases residential developments under joint venture; acquires, develops, and sells large-scale, mixed-use, and master-planned communities; and sells override units. It also develops and sells residential lots and units. In addition, the company develops shopping centers, and leases retail space and land to third parties; operates movie theaters, food courts, entertainment facilities, gas stations, and car parking in shopping centers; manages and operates malls; develops, leases, and sells office buildings; and sells industrial lots and leases factory building. Further, it engages in the development and management of hotels and resorts/serviced apartments; leasing of land to hotel tenants; and land development and construction, and facilities management activities. Ayala Land, Inc. was incorporated in 1988 and is based in Makati City, the Philippines.

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.