Critical Contrast: American Realty Investors (NYSE:ARL) & Tricon Residential (NYSE:TCN)

American Realty Investors (NYSE:ARLGet Rating) and Tricon Residential (NYSE:TCNGet Rating) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Earnings & Valuation

This table compares American Realty Investors and Tricon Residential’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Realty Investors $42.04 million 7.03 $3.35 million $0.21 87.14
Tricon Residential $441.74 million 9.43 $445.26 million N/A N/A

Tricon Residential has higher revenue and earnings than American Realty Investors.

Institutional and Insider Ownership

0.8% of American Realty Investors shares are owned by institutional investors. Comparatively, 13.4% of Tricon Residential shares are owned by institutional investors. 90.8% of American Realty Investors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for American Realty Investors and Tricon Residential, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Realty Investors 0 0 0 0 N/A
Tricon Residential 0 2 7 0 2.78

Tricon Residential has a consensus target price of $18.61, indicating a potential upside of 21.96%. Given Tricon Residential’s higher probable upside, analysts clearly believe Tricon Residential is more favorable than American Realty Investors.

Profitability

This table compares American Realty Investors and Tricon Residential’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Realty Investors 7.96% 6.72% 2.86%
Tricon Residential N/A N/A N/A

Summary

Tricon Residential beats American Realty Investors on 6 of the 10 factors compared between the two stocks.

About American Realty Investors (Get Rating)

American Realty Investors, Inc., together with its subsidiaries, acquires, develops, and owns multifamily apartment communities and commercial real estate properties in the southwestern, southeastern, and mid-western United States. The company leases apartment units to residents; and leases office, industrial, and retail space to various for-profit businesses, as well as local, state, and federal agencies; and sells land and properties. As of December 31, 2021, its portfolio included five commercial properties comprising four office buildings and one retail properties; nine multifamily apartment communities consisting of 1,492 units; and fifty-two multifamily apartment communities totaling 10,281 units. The company also owns or controls 1,886 acres of developed and undeveloped land. American Realty Investors, Inc. was founded in 1999 and is headquartered in Dallas, Texas.

About Tricon Residential (Get Rating)

Founded in 1988, Tricon is a rental housing company focused on serving the middle-market demographic. Tricon owns and operates approximately 31,000 single-family rental homes and multi-family rental units in 21 markets across the United States and Canada, managed with an integrated technology-enabled operating platform. More information about Tricon is available at www.triconresidential.com.

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