Analyzing Brookfield Property Partners L.P. (BPY) and Transcontinental Realty Investors (TCI)

Transcontinental Realty Investors (NYSE: TCI) and Brookfield Property Partners L.P. (NYSE:BPY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Dividends

Brookfield Property Partners L.P. pays an annual dividend of $1.18 per share and has a dividend yield of 5.0%. Transcontinental Realty Investors does not pay a dividend. Brookfield Property Partners L.P. pays out 74.7% of its earnings in the form of a dividend.

Risk and Volatility

Transcontinental Realty Investors has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, Brookfield Property Partners L.P. has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Transcontinental Realty Investors and Brookfield Property Partners L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transcontinental Realty Investors 0 3 0 0 2.00
Brookfield Property Partners L.P. 0 0 3 0 3.00

Transcontinental Realty Investors currently has a consensus price target of $20.33, indicating a potential downside of 7.91%. Brookfield Property Partners L.P. has a consensus price target of $26.50, indicating a potential upside of 11.81%. Given Brookfield Property Partners L.P.’s stronger consensus rating and higher possible upside, analysts plainly believe Brookfield Property Partners L.P. is more favorable than Transcontinental Realty Investors.

Earnings and Valuation

This table compares Transcontinental Realty Investors and Brookfield Property Partners L.P.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Transcontinental Realty Investors $121.84 million 1.58 $44.57 million ($2.01) -10.99
Brookfield Property Partners L.P. $6.95 billion 0.87 $3.85 billion $1.58 15.00

Brookfield Property Partners L.P. has higher revenue and earnings than Transcontinental Realty Investors. Transcontinental Realty Investors is trading at a lower price-to-earnings ratio than Brookfield Property Partners L.P., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.3% of Transcontinental Realty Investors shares are owned by institutional investors. Comparatively, 64.4% of Brookfield Property Partners L.P. shares are owned by institutional investors. 81.0% of Transcontinental Realty Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Transcontinental Realty Investors and Brookfield Property Partners L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transcontinental Realty Investors -13.64% -7.61% -1.38%
Brookfield Property Partners L.P. 17.30% 2.52% 1.08%

Summary

Brookfield Property Partners L.P. beats Transcontinental Realty Investors on 12 of the 15 factors compared between the two stocks.

About Transcontinental Realty Investors

Transcontinental Realty Investors, Inc. is an externally advised and managed real estate investment company that owns a portfolio of income-producing properties and land held for development. The Company’s segments are Commercial Properties, Apartments, Land and Other. Its portfolio of income-producing properties includes residential apartment communities, office buildings and other commercial properties. It acquires land mainly in in-fill locations or suburban markets. The Company’s income-producing properties consist of approximately eight commercial properties, including five office buildings, two retail properties and an industrial warehouse, comprising in aggregate approximately 1.9 million square feet; a golf course comprising approximately 96.09 acres, and approximately 50 residential apartment communities comprising over 7,980 units, excluding apartments being developed. In addition, it owns approximately 3,660 acres of land held for development.

About Brookfield Property Partners L.P.

Brookfield Property Partners L.P. is a diversified global real estate company. The Company owns, operates and develops a portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage and student housing assets. Its partnership is Brookfield Asset Management Inc.’s public commercial property entity and the primary vehicle through which it invests in real estate on a global basis. It operates through four segments: Core Office, Core Retail, Opportunistic and Corporate. As of December 31, 2016, its Core Office segment consisted of interests in 142 office properties totaling 99 million square feet. As of December 31, 2016, its Core Retail segment consisted of interests in 127 regional malls and urban retail properties. As of December 31, 2016, its Opportunistic segment consisted of 107 office properties comprising approximately 29 million square feet of office space in the United States, United Kingdom, Brazil and Asia.

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