Contrasting Horizon Group Properties (OTCMKTS:HGPI) & TPG RE Finance Trust (NYSE:TRTX)

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

Institutional and Insider Ownership

57.1% of TPG RE Finance Trust shares are held by institutional investors. 15.9% of Horizon Group Properties shares are held by insiders. Comparatively, 2.5% of TPG RE Finance Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Horizon Group Properties and TPG RE Finance Trust, as provided by MarketBeat.

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

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

Profitability

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

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

Earnings & Valuation

This table compares Horizon Group Properties 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
Horizon Group Properties	N/A	N/A	N/A	N/A	N/A
TPG RE Finance Trust	$135.13 million	5.34	-$116.63 million	($1.57)	-5.73

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

Volatility & Risk

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

Summary

TPG RE Finance Trust beats Horizon Group Properties on 5 of the 9 factors compared between the two stocks.

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.

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.