Comparing STAG Industrial (NYSE:STAG) & Transcontinental Realty Investors (NYSE:TCI)

STAG Industrial (NYSE:STAG) and Transcontinental Realty Investors (NYSE:TCI) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Institutional and Insider Ownership

88.7% of STAG Industrial shares are owned by institutional investors. 1.1% of STAG Industrial shares are owned by company insiders. Comparatively, 86.2% of Transcontinental Realty Investors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares STAG Industrial and Transcontinental Realty Investors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STAG Industrial	$707.84 million	9.47	$192.85 million	$0.99	37.16
Transcontinental Realty Investors	$49.90 million	N/A	$5.94 million	$0.37	76.22

STAG Industrial has higher revenue and earnings than Transcontinental Realty Investors. STAG Industrial 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 STAG Industrial and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
STAG Industrial	23.94%	5.27%	2.81%
Transcontinental Realty Investors	6.55%	0.38%	0.30%

Volatility & Risk

STAG Industrial has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for STAG Industrial and Transcontinental Realty Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STAG Industrial	0	5	3	0	2.38
Transcontinental Realty Investors	0	0	0	0	0.00

STAG Industrial presently has a consensus price target of $41.13, indicating a potential upside of 11.78%. Given STAG Industrial’s stronger consensus rating and higher probable upside, research analysts clearly believe STAG Industrial is more favorable than Transcontinental Realty Investors.

Summary

STAG Industrial beats Transcontinental Realty Investors on 11 of the 13 factors compared between the two stocks.

About STAG Industrial

We are a REIT focused on the acquisition, ownership, and operation of industrial properties throughout the United States. Our platform is designed to (i) identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial real estate markets, industries, and tenants through the principled application of our proprietary risk assessment model, (ii) provide growth through sophisticated industrial operation and an attractive opportunity set, and (iii) capitalize our business appropriately given the characteristics of our assets. We are organized and conduct our operations to maintain our qualification as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), and generally are not subject to federal income tax to the extent we currently distribute our income to our stockholders and maintain our qualification as a REIT. We remain subject to state and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed income. As of December 31, 2023, we owned 569 buildings in 41 states with approximately 112.3 million rentable square feet, consisting of 493 warehouse/distribution buildings, 70 light manufacturing buildings, one flex/office building, and five Value Add Portfolio buildings. In addition, as of December 31, 2023, we had six development projects (which are not included in the building count noted above). While the majority of our portfolio consists of single-tenant properties, we also own a growing number of multi-tenant properties. As of December 31, 2023, our buildings were approximately 98.2% leased, with no single tenant accounting for more than approximately 2.9% of our total annualized base rental revenue and no single industry accounting for more than approximately 11.0% of our total annualized base rental revenue. We intend to maintain a diversified mix of tenants to limit our exposure to any single tenant or industry. As of December 31, 2023, our Operating Portfolio was approximately 98.4% leased. SL Rent Change on new and renewal leases together grew approximately 44.0% and 24.3% during the years ended December 31, 2023 and 2022, respectively, and our Cash Rent Change on new and renewal leases together grew approximately 31.0% and 14.3% during the years ended December 31, 2023 and 2022, respectively. We have fully integrated acquisition, leasing and operations platforms led by a senior management team with decades of industrial real estate experience. Our mission is to deliver attractive long-term stockholder returns in all market environments by growing cash flow through disciplined investment in high-quality real estate while maintaining a strong balance sheet.

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.