Head to Head Analysis: Equity LifeStyle Properties (NYSE:ELS) and TPG RE Finance Trust (NYSE:TRTX)

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

Insider and Institutional Ownership

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

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity LifeStyle Properties	$1.43 billion	9.48	$314.21 million	$1.83	39.73
TPG RE Finance Trust	$141.58 million	5.13	-$116.63 million	($1.57)	-5.77

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 Ratings

This is a breakdown of current ratings and target prices for Equity LifeStyle Properties and TPG RE Finance Trust, as provided by MarketBeat.

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

Equity LifeStyle Properties currently has a consensus target price of $69.06, indicating a potential downside of 5.03%. TPG RE Finance Trust has a consensus target price of $8.75, indicating a potential downside of 3.42%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than Equity LifeStyle Properties.

Risk & Volatility

Equity LifeStyle Properties has a beta of 0.77, indicating that its stock price is 23% 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.

Dividends

Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 2.6%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 10.6%. 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. TPG RE Finance Trust pays out -61.1% of its earnings in the form of a dividend. Equity LifeStyle Properties has increased its dividend for 20 consecutive years. TPG RE Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Equity LifeStyle Properties beats TPG RE Finance Trust on 10 of the 17 factors compared between the two stocks.

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.

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.