Potlatchdeltic (NASDAQ:PCH) and TPG RE Finance Trust (NYSE:TRTX) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
87.7% of Potlatchdeltic shares are held by institutional investors. Comparatively, 59.9% of TPG RE Finance Trust shares are held by institutional investors. 3.0% of Potlatchdeltic shares are held by insiders. Comparatively, 0.8% of TPG RE Finance Trust 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.
Earnings and Valuation
This table compares Potlatchdeltic and TPG RE Finance Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Potlatchdeltic||$974.58 million||2.64||$122.88 million||$2.28||16.68|
|TPG RE Finance Trust||$266.90 million||5.40||$106.94 million||$1.70||11.64|
Potlatchdeltic has higher revenue and earnings than TPG RE Finance Trust. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than Potlatchdeltic, indicating that it is currently the more affordable of the two stocks.
Potlatchdeltic pays an annual dividend of $1.60 per share and has a dividend yield of 4.2%. TPG RE Finance Trust pays an annual dividend of $1.72 per share and has a dividend yield of 8.7%. Potlatchdeltic pays out 70.2% of its earnings in the form of a dividend. TPG RE Finance Trust pays out 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Potlatchdeltic has raised its dividend for 2 consecutive years.
This is a breakdown of recent ratings for Potlatchdeltic and TPG RE Finance Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TPG RE Finance Trust||0||0||1||0||3.00|
Potlatchdeltic currently has a consensus target price of $43.18, suggesting a potential upside of 13.50%. TPG RE Finance Trust has a consensus target price of $21.50, suggesting a potential upside of 8.70%. Given Potlatchdeltic’s higher probable upside, equities analysts clearly believe Potlatchdeltic is more favorable than TPG RE Finance Trust.
This table compares Potlatchdeltic and TPG RE Finance Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TPG RE Finance Trust||38.79%||8.39%||2.46%|
Volatility and Risk
Potlatchdeltic has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.
Potlatchdeltic beats TPG RE Finance Trust on 13 of the 17 factors compared between the two stocks.
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a medium density fiberboard plant, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest practices, is dedicated to long-term stewardship and sustainable management of its timber resources.
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 North America. It invests in commercial mortgage loans; and subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments secured by properties primarily in the office, mixed use, multifamily, industrial, retail, and hospitality 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.
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