Phillips Edison & Company, Inc. (NASDAQ:PECO) & Transcontinental Realty Investors (NYSE:TCI) Head-To-Head Contrast

Phillips Edison & Company, Inc. (NASDAQ:PECO) and Transcontinental Realty Investors (NYSE:TCI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Profitability

This table compares Phillips Edison & Company, Inc. and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phillips Edison & Company, Inc.	9.03%	2.22%	1.18%
Transcontinental Realty Investors	6.55%	0.38%	0.30%

Volatility and Risk

Phillips Edison & Company, Inc. has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Phillips Edison & Company, Inc. and Transcontinental Realty Investors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phillips Edison & Company, Inc.	0	3	3	0	2.50
Transcontinental Realty Investors	0	0	0	0	0.00

Phillips Edison & Company, Inc. presently has a consensus target price of $39.50, suggesting a potential upside of 8.73%. Given Phillips Edison & Company, Inc.’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Phillips Edison & Company, Inc. is more favorable than Transcontinental Realty Investors.

Insider & Institutional Ownership

80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. 8.0% of Phillips Edison & Company, Inc. shares are held by insiders. Comparatively, 86.2% of Transcontinental Realty Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Phillips Edison & Company, Inc. and Transcontinental Realty Investors”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phillips Edison & Company, Inc.	$642.79 million	6.93	$56.85 million	$0.46	78.98
Transcontinental Realty Investors	$49.90 million	4.47	$5.94 million	$0.37	69.85

Phillips Edison & Company, Inc. has higher revenue and earnings than Transcontinental Realty Investors. Transcontinental Realty Investors is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Summary

Phillips Edison & Company, Inc. beats Transcontinental Realty Investors on 13 of the 14 factors compared between the two stocks.

About Phillips Edison & Company, Inc.

Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.

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.