Gazit-Globe (NYSE: GZT) and Transcontinental Realty Investors (NYSE:TCI) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Insider & Institutional Ownership

8.8% of Gazit-Globe shares are held by institutional investors. Comparatively, 2.1% of Transcontinental Realty Investors shares are held by institutional investors. 81.0% of Transcontinental Realty Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Gazit-Globe pays an annual dividend of $0.40 per share and has a dividend yield of 4.2%. Transcontinental Realty Investors does not pay a dividend.

Earnings & Valuation

This table compares Gazit-Globe and Transcontinental Realty Investors’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gazit-Globe $1.38 billion 1.36 $795.46 million N/A N/A
Transcontinental Realty Investors $121.84 million 1.93 $44.57 million ($2.01) -13.43

Gazit-Globe has higher revenue and earnings than Transcontinental Realty Investors.

Volatility and Risk

Gazit-Globe has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Gazit-Globe and Transcontinental Realty Investors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gazit-Globe 0 1 3 0 2.75
Transcontinental Realty Investors 0 3 0 0 2.00

Gazit-Globe presently has a consensus price target of $12.75, suggesting a potential upside of 32.40%. Transcontinental Realty Investors has a consensus price target of $20.33, suggesting a potential downside of 24.69%. Given Gazit-Globe’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gazit-Globe is more favorable than Transcontinental Realty Investors.

Profitability

This table compares Gazit-Globe and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gazit-Globe -16.74% 3.30% 1.24%
Transcontinental Realty Investors -13.64% -7.61% -1.38%

Summary

Gazit-Globe beats Transcontinental Realty Investors on 10 of the 13 factors compared between the two stocks.

About Gazit-Globe

Gazit-Globe Ltd. is a real estate company specialized in retail premises. The Company is engaged in the acquisition, development and management of properties. Its segments include Finland, Norway, Sweden, and Estonia and Denmark. It focuses on supermarket-anchored shopping centers in urban growth markets. It operates internationally through its publicly traded and privately held subsidiaries. It operates in more than 20 countries, and owns and manages approximately 430 properties with a gross leasable area of approximately 6.5 million square meters. The Company’s properties include Kista Galleria, Iso Omena, Potrero Center, Yorkville Village, Atrium Promenada, Serramonte Shopping Center, Galeria Dominikanska, Westbury Plaza, Northgate Centre, San Pelegrino Shopping Mall, G Tzameret, Kosice Optima Shopping Center, Coens Galerie, Parkway Mall, Rutherford Marketplace, Atrium Copernicus, Atrium Biala, Molo Shopping Center, Wentorf Shopping Center, Plaza Escuela and Mount Royal Village.

About Transcontinental Realty Investors

Transcontinental Realty Investors, Inc. is an externally advised and managed real estate investment company that owns a portfolio of income-producing properties and land held for development. The Company’s segments are Commercial Properties, Apartments, Land and Other. Its portfolio of income-producing properties includes residential apartment communities, office buildings and other commercial properties. It acquires land mainly in in-fill locations or suburban markets. The Company’s income-producing properties consist of approximately eight commercial properties, including five office buildings, two retail properties and an industrial warehouse, comprising in aggregate approximately 1.9 million square feet; a golf course comprising approximately 96.09 acres, and approximately 50 residential apartment communities comprising over 7,980 units, excluding apartments being developed. In addition, it owns approximately 3,660 acres of land held for development.

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