Critical Review: Cyrela Brazil Realty (OTCMKTS:CYRBY) versus Transcontinental Realty Investors (NYSE:TCI)

Profitability

This table compares Transcontinental Realty Investors and Cyrela Brazil Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	13.88%	0.41%	0.33%
Cyrela Brazil Realty	19.65%	16.95%	7.90%

Volatility and Risk

Transcontinental Realty Investors has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Cyrela Brazil Realty has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Valuation & Earnings

This table compares Transcontinental Realty Investors and Cyrela Brazil Realty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$45.23 million	9.01	$5.86 million	$0.76	62.06
Cyrela Brazil Realty	$1.48 billion	1.25	$305.72 million	$0.80	6.00

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

Summary

Cyrela Brazil Realty beats Transcontinental Realty Investors on 7 of the 9 factors compared between the two stocks.

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.

About Cyrela Brazil Realty

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.