Horizon Group Properties (OTCMKTS:HGPI) vs. TPG RE Finance Trust (NYSE:TRTX) Critical Analysis

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

Earnings & Valuation

This table compares TPG RE Finance Trust and Horizon Group Properties’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$135.13 million	5.34	-$116.63 million	($1.57)	-5.73
Horizon Group Properties	N/A	N/A	N/A	N/A	N/A

Horizon Group Properties has lower revenue, but higher earnings than TPG RE Finance Trust.

Analyst Recommendations

This is a breakdown of current ratings for TPG RE Finance Trust and Horizon Group Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	1	1	3	0	2.40
Horizon Group Properties	0	0	0	0	N/A

TPG RE Finance Trust presently has a consensus price target of $8.10, indicating a potential downside of 10.00%. Given TPG RE Finance Trust’s higher probable upside, equities research analysts plainly believe TPG RE Finance Trust is more favorable than Horizon Group Properties.

Institutional and Insider 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 company insiders. Comparatively, 15.9% of Horizon Group Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

TPG RE Finance Trust has a beta of 2.19, meaning that its stock price is 119% more volatile than the S&P 500. Comparatively, Horizon Group Properties has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Profitability

This table compares TPG RE Finance Trust and Horizon Group Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	-27.55%	-21.63%	-5.69%
Horizon Group Properties	N/A	N/A	N/A

Summary

TPG RE Finance Trust beats Horizon Group Properties on 5 of the 9 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 Horizon Group Properties

Based in Chicago, Illinois, Horizon Group Properties, Inc. has 12 operating factory outlet centers and one power center in 10 states totaling more than 2.6 million square feet.