Analyzing Intergroup (NASDAQ:INTG) & Transcontinental Realty Investors (NYSE:TCI)

Intergroup (NASDAQ:INTG) and Transcontinental Realty Investors (NYSE:TCI) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Earnings & Valuation

This table compares Intergroup and Transcontinental Realty Investors”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intergroup	$64.38 million	1.22	-$5.35 million	($2.47)	-14.81
Transcontinental Realty Investors	$47.07 million	8.29	$5.86 million	$0.76	59.40

Transcontinental Realty Investors has lower revenue, but higher earnings than Intergroup. Intergroup 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.

Institutional and Insider Ownership

3.4% of Intergroup shares are owned by institutional investors. 74.1% of Intergroup shares are owned by insiders. Comparatively, 86.2% of Transcontinental Realty Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intergroup	-8.31%	N/A	-5.01%
Transcontinental Realty Investors	13.88%	0.41%	0.33%

Volatility and Risk

Intergroup has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Intergroup and Transcontinental Realty Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intergroup	1	0	0	0	1.00
Transcontinental Realty Investors	0	1	0	0	2.00

Summary

Transcontinental Realty Investors beats Intergroup on 10 of the 12 factors compared between the two stocks.

About Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.

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.