Howard Hughes (NYSE:HHH) & Transcontinental Realty Investors (NYSE:TCI) Head-To-Head Analysis

Howard Hughes (NYSE:HHH) and Transcontinental Realty Investors (NYSE:TCI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Volatility & Risk

Howard Hughes has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Howard Hughes	8.40%	5.57%	1.69%
Transcontinental Realty Investors	11.52%	0.30%	0.23%

Valuation and Earnings

This table compares Howard Hughes and Transcontinental Realty Investors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Howard Hughes	$1.47 billion	3.00	$123.90 million	$2.11	35.21
Transcontinental Realty Investors	$47.07 million	8.51	$5.86 million	$0.64	72.45

Howard Hughes has higher revenue and earnings than Transcontinental Realty Investors. Howard Hughes 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 & Insider Ownership

93.8% of Howard Hughes shares are held by institutional investors. 48.0% of Howard Hughes shares are held by company insiders. Comparatively, 86.2% of Transcontinental Realty Investors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Howard Hughes and Transcontinental Realty Investors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Howard Hughes	0	3	2	0	2.40
Transcontinental Realty Investors	0	1	0	0	2.00

Howard Hughes presently has a consensus target price of $83.33, suggesting a potential upside of 12.18%. Given Howard Hughes’ stronger consensus rating and higher probable upside, analysts plainly believe Howard Hughes is more favorable than Transcontinental Realty Investors.

Summary

Howard Hughes beats Transcontinental Realty Investors on 10 of the 14 factors compared between the two stocks.

About Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.

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.