J. W. Mays (NASDAQ:MAYS) versus Tejon Ranch (NYSE:TRC) Critical Survey

Tejon Ranch (NYSE:TRC) and J. W. Mays (NASDAQ:MAYS) are both small-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Profitability

This table compares Tejon Ranch and J. W. Mays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tejon Ranch	11.36%	1.56%	1.20%
J. W. Mays	-6.64%	-2.70%	-1.55%

Risk and Volatility

Tejon Ranch has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, J. W. Mays has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Insider & Institutional Ownership

60.6% of Tejon Ranch shares are owned by institutional investors. Comparatively, 3.2% of J. W. Mays shares are owned by institutional investors. 21.9% of Tejon Ranch shares are owned by insiders. Comparatively, 40.8% of J. W. Mays shares are owned 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.

Valuation and Earnings

This table compares Tejon Ranch and J. W. Mays”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tejon Ranch	$49.59 million	9.61	$80,000.00	$0.29	60.79
J. W. Mays	$21.09 million	3.77	-$1.40 million	($0.70)	-56.27

Tejon Ranch has higher revenue and earnings than J. W. Mays. J. W. Mays is trading at a lower price-to-earnings ratio than Tejon Ranch, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tejon Ranch and J. W. Mays, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tejon Ranch	0	1	0	0	2.00
J. W. Mays	1	0	0	0	1.00

Summary

Tejon Ranch beats J. W. Mays on 11 of the 12 factors compared between the two stocks.

About Tejon Ranch

Tejon Ranch Co. is a diversified land and real estate development company based in California. It manages the approximately 270,000-acre Tejon Ranch, one of the largest contiguous private landholdings in the state, located primarily in Kern County near the southern San Joaquin Valley and the Tejon Pass connecting the Central Valley and the Los Angeles region. The company’s principal activities include commercial, industrial, residential and resort development, as well as agriculture and resource management.

About J. W. Mays

J. W. Mays, Inc. is a real estate company based in Brooklyn, New York. The company’s principal business is owning, leasing and managing commercial real estate properties, with an emphasis on retail and other income-producing properties. The company traces its history to the J. W. Mays department store business, which operated in the New York metropolitan area. Although its retail operations were discontinued, J. W. Mays continues to hold and manage real estate assets, primarily in the New York City region.