Essex Property Trust (NYSE:ESS – Get Free Report) and TPG RE Finance Trust (NYSE:TRTX – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
Institutional & Insider Ownership
96.5% of Essex Property Trust shares are held by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are held by institutional investors. 3.8% of Essex Property Trust shares are held by company insiders. Comparatively, 2.5% of TPG RE Finance Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Essex Property Trust and TPG RE Finance Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Essex Property Trust | 1 | 12 | 7 | 0 | 2.30 |
| TPG RE Finance Trust | 1 | 0 | 5 | 0 | 2.67 |
Earnings and Valuation
This table compares Essex Property Trust and TPG RE Finance Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Essex Property Trust | $1.67 billion | 10.68 | $405.83 million | $8.56 | 32.42 |
| TPG RE Finance Trust | $390.25 million | 1.72 | -$116.63 million | $0.69 | 12.04 |
Essex Property Trust has higher revenue and earnings than TPG RE Finance Trust. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than Essex Property Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Essex Property Trust and TPG RE Finance Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Essex Property Trust | 31.55% | 9.72% | 4.36% |
| TPG RE Finance Trust | 19.65% | -7.50% | -2.19% |
Volatility and Risk
Essex Property Trust has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500.
Dividends
Essex Property Trust pays an annual dividend of $9.80 per share and has a dividend yield of 3.5%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.6%. Essex Property Trust pays out 114.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG RE Finance Trust pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust has raised its dividend for 30 consecutive years.
Summary
Essex Property Trust beats TPG RE Finance Trust on 14 of the 17 factors compared between the two stocks.
About Essex Property Trust
Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 252 apartment communities comprising approximately 62,000 apartment homes with an additional property in active development.
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.
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