Financial Review: Transcontinental Realty Investors (NYSE:TCI) and IRSA Inversiones Y Representaciones (NYSE:IRS)

Institutional & Insider Ownership

45.5% of IRSA Inversiones Y Representaciones shares are owned by institutional investors. 86.2% of Transcontinental Realty Investors shares are owned by insiders. Comparatively, 25.1% of IRSA Inversiones Y Representaciones shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Transcontinental Realty Investors and IRSA Inversiones Y Representaciones”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$47.07 million	8.50	$5.86 million	$0.76	60.90
IRSA Inversiones Y Representaciones	$658.73 million	1.60	-$58.25 million	$1.58	8.79

Transcontinental Realty Investors has higher earnings, but lower revenue than IRSA Inversiones Y Representaciones. IRSA Inversiones Y Representaciones 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.

Profitability

This table compares Transcontinental Realty Investors and IRSA Inversiones Y Representaciones’ 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%
IRSA Inversiones Y Representaciones	25.95%	7.91%	3.94%

Risk and Volatility

Transcontinental Realty Investors has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, IRSA Inversiones Y Representaciones has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Summary

IRSA Inversiones Y Representaciones beats Transcontinental Realty Investors on 7 of the 11 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 IRSA Inversiones Y Representaciones

IRSA Inversiones y Representaciones Sociedad Anónima, together with its subsidiaries, engages in the diversified real estate activities in Argentina. It operates through five segments: Shopping Malls, Offices, Hotels, Sales and Developments, and Others. The company is involved in the acquisition, development, and operation of shopping malls, office buildings, and other non-shopping mall properties primarily for rental purposes. It also acquires and operates luxury hotels and resorts under the Intercontinental, Libertador, and Llao Llao names; develops and sells residential properties, including apartment tower complexes; and acquires undeveloped land reserves for future development or sale. In addition, the company engages in the development and operation of stadium; and provision of ¡appa!, a digital customer loyalty system platform, for consumption in shopping malls, use of parking spaces, and redemption of corporate benefits. The company was incorporated in 1943 and is headquartered in Buenos Aires, Argentina. IRSA Inversiones y Representaciones Sociedad Anónima operates as a subsidiary of Cresud S.A.C.I.F. y A.