Financial Contrast: Santa Fe Financ (OTCMKTS:SFEF) and TPG RE Finance Trust (NYSE:TRTX)

TPG RE Finance Trust (NYSE:TRTX) and Santa Fe Financ (OTCMKTS:SFEF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares TPG RE Finance Trust and Santa Fe Financ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	18.14%	6.84%	1.79%
Santa Fe Financ	N/A	N/A	N/A

Insider and Institutional Ownership

57.1% of TPG RE Finance Trust shares are held by institutional investors. 3.0% of TPG RE Finance Trust shares are held by insiders. Comparatively, 87.4% of Santa Fe Financ shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for TPG RE Finance Trust and Santa Fe Financ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	1	1	4	0	2.50
Santa Fe Financ	0	0	0	0	0.00

TPG RE Finance Trust currently has a consensus target price of $10.17, indicating a potential upside of 29.26%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe TPG RE Finance Trust is more favorable than Santa Fe Financ.

Valuation & Earnings

This table compares TPG RE Finance Trust and Santa Fe Financ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$332.58 million	1.85	$60.32 million	$0.56	14.04
Santa Fe Financ	N/A	N/A	N/A	N/A	N/A

TPG RE Finance Trust has higher revenue and earnings than Santa Fe Financ.

Summary

TPG RE Finance Trust beats Santa Fe Financ on 8 of the 9 factors compared between the two stocks.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.

About Santa Fe Financ

Santa Fe Financial Corporation owns and 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 property consists of 544 guest rooms and luxury suites, and related facilities, including a five level underground parking garage. The company also owns and operates a 27-unit and a 2-unit multi-family apartment complex located in Los Angeles, California, as well as owns approximately 2 acres of unimproved land for development in Maui, Hawaii. Further, it invests in instruments, corporate debt and equity securities, publicly traded investment funds, mortgage backed securities, securities issued by REIT's, and other companies, which invest primarily in real estate. The company was formerly known as Tri Financial Corporation and changed its name to Santa Fe Financial Corporation in September 1970. The company was founded in 1967 and is based in Los Angeles, California. Santa Fe Financial Corporation is a subsidiary of The InterGroup Corporation.