Analyzing TPG RE Finance Trust (NYSE:TRTX) and British Land (OTCMKTS:BTLCY)

TPG RE Finance Trust (NYSE:TRTX) and British Land (OTCMKTS:BTLCY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk & Volatility

TPG RE Finance Trust has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, British Land has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares TPG RE Finance Trust and British Land’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	20.46%	6.37%	1.76%
British Land	N/A	N/A	N/A

Dividends

TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 10.5%. British Land pays an annual dividend of $0.20 per share and has a dividend yield of 3.7%. TPG RE Finance Trust pays out 147.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares TPG RE Finance Trust and British Land”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$351.97 million	2.02	$74.33 million	$0.65	14.00
British Land	$571.65 million	9.34	$431.25 million	N/A	N/A

British Land has higher revenue and earnings than TPG RE Finance Trust.

Insider and Institutional Ownership

57.1% of TPG RE Finance Trust shares are owned by institutional investors. 2.5% of TPG RE Finance Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for TPG RE Finance Trust and British Land, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	0	3	3	1	2.71
British Land	0	1	0	3	3.50

TPG RE Finance Trust presently has a consensus target price of $10.75, indicating a potential upside of 18.13%. Given TPG RE Finance Trust’s higher probable upside, equities analysts clearly believe TPG RE Finance Trust is more favorable than British Land.

Summary

TPG RE Finance Trust beats British Land on 9 of the 15 factors compared between the two stocks.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.

About British Land

Our portfolio of high quality UK commercial property is focused on London Campuses and Retail & London Urban Logistics assets throughout the UK. We own or manage a portfolio valued at £13.0bn (British Land share: £8.9bn) as at 31 March 2023 making us one of Europe's largest listed real estate investment companies. We create Places People Prefer, delivering the best, most sustainable places for our customers and communities. Our strategy is to leverage our best in class platform and proven expertise in development, repositioning and active management, investing behind two key themes: Campuses and Retail & London Urban Logistics. Our three Campuses at Broadgate, Paddington Central and Regent's Place are dynamic neighbourhoods, attracting growth customers and sectors, and offering some of the best connected, highest quality and most sustainable space in London. We are delivering our fourth Campus at Canada Water, where we have planning consent to deliver 5m sq ft of residential, commercial, retail and community space over 53 acres. Our Campuses account for 63% of our portfolio. Retail & London Urban Logistics accounts for 37% of the portfolio and is focused on retail parks which are aligned to the growth of convenience, online and last mile fulfilment. We are complementing this with urban logistics primarily in London, focused on development-led opportunities. Sustainability is embedded throughout our business. Our approach is focused on three key pillars where British Land can create the most benefit: Greener Spaces, making our whole portfolio net zero carbon by 2030, Thriving Places, partnering to grow social value and wellbeing in the communities where we operate and Responsible Choices, advocating responsible business practices across British Land and throughout our supply chain, and maintaining robust governance structures.