Equity LifeStyle Properties (NYSE:ELS) vs. TPG RE Finance Trust (NYSE:TRTX) Financial Contrast

TPG RE Finance Trust (NYSE:TRTX) and Equity LifeStyle Properties (NYSE:ELS) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	-3.56%	-18.84%	-5.24%
Equity LifeStyle Properties	23.56%	23.71%	6.34%

Earnings & Valuation

This table compares TPG RE Finance Trust and Equity LifeStyle Properties’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$141.58 million	5.06	-$116.63 million	($1.57)	-5.68
Equity LifeStyle Properties	$1.43 billion	9.17	$314.21 million	$1.83	38.45

Equity LifeStyle Properties has higher revenue and earnings than TPG RE Finance Trust. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than Equity LifeStyle Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for TPG RE Finance Trust and Equity LifeStyle Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	1	1	4	0	2.50
Equity LifeStyle Properties	0	7	2	0	2.22

TPG RE Finance Trust currently has a consensus target price of $8.75, indicating a potential downside of 1.91%. Equity LifeStyle Properties has a consensus target price of $68.94, indicating a potential downside of 2.01%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe TPG RE Finance Trust is more favorable than Equity LifeStyle Properties.

Insider & Institutional Ownership

57.1% of TPG RE Finance Trust shares are owned by institutional investors. Comparatively, 97.2% of Equity LifeStyle Properties shares are owned by institutional investors. 2.5% of TPG RE Finance Trust shares are owned by company insiders. Comparatively, 1.4% of Equity LifeStyle Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 10.8%. Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 2.7%. TPG RE Finance Trust pays out -61.1% of its earnings in the form of a dividend. Equity LifeStyle Properties pays out 104.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity LifeStyle Properties has raised its dividend for 20 consecutive years. TPG RE Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

TPG RE Finance Trust has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500. Comparatively, Equity LifeStyle Properties has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Summary

Equity LifeStyle Properties beats TPG RE Finance Trust on 10 of the 17 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 Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. As of January 29, 2024, we own or have an interest in 451 properties in 35 states and British Columbia consisting of 172,465 sites.