Critical Survey: Transcontinental Realty Investors (NYSE:TCI) versus Pebblebrook Hotel Trust (NYSE:PEB)

Transcontinental Realty Investors (NYSE:TCI) and Pebblebrook Hotel Trust (NYSE:PEB) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Earnings and Valuation

This table compares Transcontinental Realty Investors and Pebblebrook Hotel Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$44.91 million	7.73	$5.94 million	$0.91	44.17
Pebblebrook Hotel Trust	$1.46 billion	0.78	-$78.02 million	($0.48)	-19.86

Transcontinental Realty Investors has higher earnings, but lower revenue than Pebblebrook Hotel Trust. Pebblebrook Hotel 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 Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	6.55%	0.38%	0.30%
Pebblebrook Hotel Trust	0.25%	0.13%	0.06%

Volatility & Risk

Transcontinental Realty Investors has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Transcontinental Realty Investors and Pebblebrook Hotel Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	0	0	0	0.00
Pebblebrook Hotel Trust	1	5	1	0	2.00

Pebblebrook Hotel Trust has a consensus target price of $12.28, indicating a potential upside of 28.80%. Given Pebblebrook Hotel Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Pebblebrook Hotel Trust is more favorable than Transcontinental Realty Investors.

Summary

Transcontinental Realty Investors beats Pebblebrook Hotel Trust on 7 of the 12 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 Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.