TPG RE Finance Trust (NYSE:TRTX) versus Equinix (NASDAQ:EQIX) Head to Head Contrast

TPG RE Finance Trust (NYSE:TRTX) and Equinix (NASDAQ:EQIX) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Volatility and Risk

TPG RE Finance Trust has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Equinix has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for TPG RE Finance Trust and Equinix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	0	0	4	0	3.00
Equinix	0	2	20	6	3.14

TPG RE Finance Trust currently has a consensus price target of $9.50, suggesting a potential upside of 20.80%. Equinix has a consensus price target of $1,004.80, suggesting a potential upside of 9.88%. Given TPG RE Finance Trust’s higher possible upside, research analysts plainly believe TPG RE Finance Trust is more favorable than Equinix.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$149.34 million	4.21	-$116.63 million	$0.70	11.23
Equinix	$8.85 billion	10.11	$815.00 million	$9.62	95.06

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	21.79%	7.57%	2.27%
Equinix	9.32%	6.31%	2.41%

Dividends

TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 12.2%. Equinix pays an annual dividend of $18.76 per share and has a dividend yield of 2.1%. TPG RE Finance Trust pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix pays out 195.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix has raised its dividend for 10 consecutive years. TPG RE Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

57.1% of TPG RE Finance Trust shares are held by institutional investors. Comparatively, 94.9% of Equinix shares are held by institutional investors. 3.0% of TPG RE Finance Trust shares are held by insiders. Comparatively, 0.3% of Equinix shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Equinix beats TPG RE Finance Trust on 11 of the 18 factors compared between the two stocks.

About TPG RE Finance Trust

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 multifamily, life science, mixed-use, hospitality, self storage, 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.

About Equinix

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.