Head-To-Head Review: HG (OTCMKTS:STLY) versus Terreno Realty (NYSE:TRNO)

Terreno Realty (NYSE:TRNO) and HG (OTCMKTS:STLY) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations for Terreno Realty and HG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	1	6	6	0	2.38
HG	0	0	0	0	0.00

Terreno Realty currently has a consensus target price of $65.54, indicating a potential upside of 6.80%. Given Terreno Realty’s stronger consensus rating and higher possible upside, equities analysts clearly believe Terreno Realty is more favorable than HG.

Profitability

This table compares Terreno Realty and HG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	72.41%	8.27%	6.41%
HG	12.44%	4.58%	3.41%

Insider and Institutional Ownership

1.7% of HG shares are owned by institutional investors. 2.4% of Terreno Realty shares are owned by company insiders. Comparatively, 75.0% of HG shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Terreno Realty and HG”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$382.62 million	16.58	$184.50 million	$3.15	19.48
HG	$11.51 million	2.26	-$240,000.00	$0.43	11.63

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

Risk and Volatility

Terreno Realty has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, HG has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Summary

Terreno Realty beats HG on 12 of the 14 factors compared between the two stocks.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.