The RMR Group Inc. (RMR) vs Transcontinental Realty Investors, Inc. (TCI)

The RMR Group Inc. and Transcontinental Realty Investors, Inc. are both Real Estate Services companies. The RMR Group Inc. is the larger, with a market value of $602.5M against $380.0M — 1.6× the size. The RMR Group Inc. trades at the lower P/E: 16.3× against 45.6×. Transcontinental Realty Investors, Inc. grew revenue faster over the last twelve months: 5.33% against −15.2%. Transcontinental Realty Investors, Inc. has the higher net margin (16.1% vs 3.01%) and the lower return on invested capital (−0.75% vs 6.96%). Across the 21 metrics below, The RMR Group Inc. leads on 11 and Transcontinental Realty Investors, Inc. on 10.

Valuation

Metric RMR TCI Real Estate Services median
P/E 16.25 45.62 16.25
P/S 0.49 7.39 1.12
P/B 0.78 0.43 1.32
Price to free cash flow n/m n/m 13.29
EV/EBITDA 4.54 57.42 10.22
EV/Sales 0.48 5.54 1.16
Earnings yield 6.15% 2.19% 0.99%
Free cash flow yield (16.66%) (0.97%) (0.97%)

Profitability

Metric RMR TCI Real Estate Services median
Gross margin 98.95% 38.36% 26.81%
Operating margin 6.37% (18.34%) 0.00%
Net margin 3.01% 16.08% 0.11%
Free cash flow margin (8.11%) (7.16%) 0.00%
Return on equity 4.77% 0.94% 0.94%
Return on assets 2.83% 0.71% 0.00%
Return on invested capital 6.96% (0.75%) 0.00%

Growth

Metric RMR TCI Real Estate Services median
Revenue growth (TTM) (15.16%) 5.33% 4.33%
EPS growth (last fiscal year) (22.06%) 135.29% —
Revenue growth, 5-year CAGR 3.50% (2.96%) 4.05%
Net income growth, 5-year CAGR (9.66%) 15.66% 0.00%

Health

Metric RMR TCI Real Estate Services median
Debt to equity 0.06 0.00 0.08
Current ratio 0.24 0.82 1.95
Net debt to EBITDA (0.28) (16.58) 0.54

Dividend

Metric RMR TCI Real Estate Services median
Dividend yield 6.25% — 1.33%
Payout ratio 0.43 0.00 0.00

Size

Metric RMR TCI Real Estate Services median
Market cap 602.47m 380.00m 218.52m

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