Critical Comparison: Healthcare Realty Trust (NYSE:HR) & Transcontinental Realty Investors (NYSE:TCI)

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

Valuation and Earnings

This table compares Transcontinental Realty Investors and Healthcare Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$49.90 million	N/A	$5.94 million	$0.69	39.51
Healthcare Realty Trust	$1.34 billion	4.57	-$278.26 million	($1.58)	-10.71

Transcontinental Realty Investors has higher earnings, but lower revenue than Healthcare Realty Trust. Healthcare Realty Trust 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.

Profitability

This table compares Transcontinental Realty Investors and Healthcare Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	11.96%	0.70%	0.56%
Healthcare Realty Trust	-45.63%	-9.42%	-4.90%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Transcontinental Realty Investors and Healthcare Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	0	0	0	N/A
Healthcare Realty Trust	1	4	1	0	2.00

Healthcare Realty Trust has a consensus price target of $17.17, indicating a potential upside of 1.46%. Given Healthcare Realty Trust’s higher probable upside, analysts clearly believe Healthcare Realty Trust is more favorable than Transcontinental Realty Investors.

Volatility & Risk

Transcontinental Realty Investors has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Summary

Transcontinental Realty Investors beats Healthcare Realty Trust on 6 of the 10 factors compared between the two stocks.

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.

About Healthcare Realty Trust

Healthcare Realty (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty's portfolio includes more than 700 properties totaling over 40 million square feet concentrated in 15 growth markets.