Critical Analysis: Sino Land (OTCMKTS:SNLAY) and TPG RE Finance Trust (NYSE:TRTX)

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

Risk and Volatility

Sino Land has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sino Land	N/A	N/A	N/A
TPG RE Finance Trust	19.65%	-7.50%	-2.19%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sino Land	0	0	0	0	0.00
TPG RE Finance Trust	1	0	5	0	2.67

TPG RE Finance Trust has a consensus target price of $9.08, indicating a potential upside of 2.29%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than Sino Land.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sino Land	$1.12 billion	7.72	$562.96 million	N/A	N/A
TPG RE Finance Trust	$154.87 million	4.64	-$116.63 million	$0.69	12.87

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

Institutional & Insider Ownership

57.1% of TPG RE Finance Trust shares are held by institutional investors. 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 company is poised for long-term growth.

Dividends

Sino Land pays an annual dividend of $0.51 per share and has a dividend yield of 10.2%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 10.8%. 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.

Summary

TPG RE Finance Trust beats Sino Land on 8 of the 14 factors compared between the two stocks.

About Sino Land

Sino Land Company Limited, an investment holding company, invests in, develops, manages, and trades in properties. It operates through six segments: Property Sales, Property Rental, Property Management and Other Services, Hotel Operations, Investments in Securities, and Financing. The company's property portfolio includes shopping malls, offices, industrial buildings, residentials and car parks. In addition, it provides cleaning, building construction and management, financing, administration, security, mortgage loan financing, secretarial, management, project management, securities investment, consultancy, and deposit placing services, as well as operates hotels. Further, the company engages in real estate agency and trustee related services. The company operates approximately 19.5 million square feet of attributable floor area in Mainland China, Hong Kong, Singapore, and Sydney. Sino Land Company Limited was incorporated in 1971 and is based in Tsim Sha Tsui, Hong Kong. The company is a subsidiary of Tsim Sha Tsui Properties Limited.

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.