Tejon Ranch (NYSE:TRC – Get Free Report) and Offerpad Solutions (NYSE:OPAD – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
Insider & Institutional Ownership
60.6% of Tejon Ranch shares are owned by institutional investors. Comparatively, 39.4% of Offerpad Solutions shares are owned by institutional investors. 21.9% of Tejon Ranch shares are owned by company insiders. Comparatively, 16.7% of Offerpad Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Tejon Ranch and Offerpad Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tejon Ranch | 10.62% | 1.23% | 0.95% |
| Offerpad Solutions | -9.85% | -99.08% | -23.21% |
Volatility & Risk
Tejon Ranch has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Offerpad Solutions has a beta of 2.61, suggesting that its stock price is 161% more volatile than the S&P 500.
Valuation & Earnings
This table compares Tejon Ranch and Offerpad Solutions”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tejon Ranch | $49.59 million | 8.87 | $80,000.00 | $0.23 | 70.79 |
| Offerpad Solutions | $404.53 million | 0.03 | -$46.38 million | ($10.24) | -0.22 |
Tejon Ranch has higher earnings, but lower revenue than Offerpad Solutions. Offerpad Solutions is trading at a lower price-to-earnings ratio than Tejon Ranch, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Tejon Ranch and Offerpad Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tejon Ranch | 0 | 1 | 0 | 0 | 2.00 |
| Offerpad Solutions | 1 | 1 | 1 | 0 | 2.00 |
Offerpad Solutions has a consensus target price of $24.83, suggesting a potential upside of 979.71%. Given Offerpad Solutions’ higher probable upside, analysts clearly believe Offerpad Solutions is more favorable than Tejon Ranch.
Summary
Tejon Ranch beats Offerpad Solutions on 9 of the 13 factors compared between the two stocks.
About Tejon Ranch
Tejon Ranch Co., together with its subsidiaries, operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. The Commercial/Industrial Real Estate Development segment engages in the planning and permitting of land for development; construction of infrastructure projects, pre-leased buildings, and buildings to be leased or sold; and sale of land to third parties for their own development. It is also involved in the activities related to communications leases, a power plant lease, and landscape maintenance. This segment leases land to various auto service stations with convenience stores, fast-food operations, service diner-style restaurant, a motel, an antique shop, and a post office; various microwave repeater locations, radio and cellular transmitter sites, and fiber optic cable routes; and package of land for an electric power plant. The Resort/Residential Real Estate Development segment engages in land entitlement, planning, pre-construction engineering, stewardship, and conservation activities. The Mineral Resources segment includes oil and gas royalties, rock and aggregate royalties, and royalties from a cement operation leased to National Cement Company of California, Inc.; and the management of water assets and infrastructure projects. The Farming segment farms permanent crops, such as wine grapes, almonds, and pistachios in package of land. It also manages the farming of alfalfa and forage mix on package of land in the Antelope Valley; and leases package of land for growing vegetables, as well as almonds. The Ranch Operations segment provides game management and ancillary land services comprising grazing leases and filming, as well as various guided hunts. Tejon Ranch Co. was founded in 1843 and is based in Lebec, California.
About Offerpad Solutions
Offerpad Solutions Inc., together with its subsidiaries, provides technology-enabled solutions for residential real estate market in the United States. It operates iBuying, a real estate solutions platform for on-demand customer that provides home buyers the opportunity to browse and tour homes online. It buys and sells homes through cash offer and listing services. In addition, the company offers renovation services; and ancillary products and services, including mortgage, title insurance, and escrow services, as well as Offerpad Bundle Rewards program that allows customers to receive various discounts when selling and buying a home. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.
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