Contrasting HG (OTCMKTS:STLY) and TPG RE Finance Trust (NYSE:TRTX)

HG (OTCMKTS:STLYGet Rating) and TPG RE Finance Trust (NYSE:TRTXGet Rating) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for HG and TPG RE Finance Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HG 0 0 0 0 N/A
TPG RE Finance Trust 0 1 2 1 3.00

TPG RE Finance Trust has a consensus price target of $14.25, indicating a potential upside of 26.33%. Given TPG RE Finance Trust’s higher possible upside, analysts clearly believe TPG RE Finance Trust is more favorable than HG.

Profitability

This table compares HG and TPG RE Finance Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HG N/A 0.48% 0.41%
TPG RE Finance Trust 57.56% 10.80% 2.91%

Volatility & Risk

HG has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.

Institutional and Insider Ownership

1.7% of HG shares are held by institutional investors. Comparatively, 71.3% of TPG RE Finance Trust shares are held by institutional investors. 35.2% of HG shares are held by insiders. Comparatively, 1.8% of TPG RE Finance Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares HG and TPG RE Finance Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HG $2.43 million 10.28 $2.76 million $0.94 9.36
TPG RE Finance Trust $240.72 million 3.62 $138.55 million $0.86 13.12

TPG RE Finance Trust has higher revenue and earnings than HG. HG is trading at a lower price-to-earnings ratio than TPG RE Finance Trust, indicating that it is currently the more affordable of the two stocks.

Summary

TPG RE Finance Trust beats HG on 11 of the 14 factors compared between the two stocks.

HG Company Profile (Get Rating)

HG Holdings, Inc., through its interest in HC Government Realty Trust, Inc., owns and operates real estate properties in the United States. It owns and operates a portfolio of 20 single-tenant properties leased for the occupancy by federal agencies, including the Federal Bureau of Investigation, the Drug Enforcement Administration, the Social Security Administration, and the Department of Transportation. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.

TPG RE Finance Trust Company Profile (Get Rating)

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the office, multifamily, life science, mixed-use, hospitality, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.

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