Transcontinental Realty Investors (NYSE:TCI) & Phillips Edison & Company, Inc. (NASDAQ:PECO) Head to Head Analysis

Phillips Edison & Company, Inc. (NASDAQ:PECO) and Transcontinental Realty Investors (NYSE:TCI) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Phillips Edison & Company, Inc. and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phillips Edison & Company, Inc.	9.03%	2.22%	1.18%
Transcontinental Realty Investors	6.55%	0.38%	0.30%

Valuation and Earnings

This table compares Phillips Edison & Company, Inc. and Transcontinental Realty Investors”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phillips Edison & Company, Inc.	$610.12 million	7.29	$56.85 million	$0.46	78.89
Transcontinental Realty Investors	$49.90 million	4.78	$5.94 million	$0.37	74.66

Phillips Edison & Company, Inc. has higher revenue and earnings than Transcontinental Realty Investors. Transcontinental Realty Investors is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. 8.0% of Phillips Edison & Company, Inc. shares are held by insiders. Comparatively, 86.2% of Transcontinental Realty Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Phillips Edison & Company, Inc. has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Phillips Edison & Company, Inc. and Transcontinental Realty Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phillips Edison & Company, Inc.	0	3	3	0	2.50
Transcontinental Realty Investors	0	0	0	0	0.00

Phillips Edison & Company, Inc. presently has a consensus price target of $39.50, indicating a potential upside of 8.85%. Given Phillips Edison & Company, Inc.’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Phillips Edison & Company, Inc. is more favorable than Transcontinental Realty Investors.

Summary

Phillips Edison & Company, Inc. beats Transcontinental Realty Investors on 13 of the 14 factors compared between the two stocks.

About Phillips Edison & Company, Inc.

Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.

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.