Transcontinental Realty Investors (NYSE:TCI) and Healthcare Realty Trust (NYSE:HR) Critical Review

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

Risk & Volatility

Healthcare Realty Trust has a beta of 0.91, meaning that its share price is 9% less 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.

Profitability

This table compares Healthcare Realty Trust and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-45.63%	-9.42%	-4.90%
Transcontinental Realty Investors	11.96%	0.70%	0.56%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Healthcare Realty Trust and Transcontinental Realty Investors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	1	4	1	0	2.00
Transcontinental Realty Investors	0	0	0	0	0.00

Healthcare Realty Trust presently has a consensus price target of $17.17, suggesting a potential downside of 2.18%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Healthcare Realty Trust is more favorable than Transcontinental Realty Investors.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.34 billion	4.74	-$278.26 million	($1.58)	-11.11
Transcontinental Realty Investors	$49.90 million	N/A	$5.94 million	$0.69	39.86

Transcontinental Realty Investors has lower revenue, but higher earnings than Healthcare Realty Trust. Healthcare Realty 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.

Summary

Transcontinental Realty Investors beats Healthcare Realty Trust on 6 of the 11 factors compared between the two stocks.

About Healthcare Realty Trust

Healthcare Realty (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The Company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty's portfolio includes more than 700 properties totaling over 40 million square feet concentrated in 15 growth markets.

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.