SBA Communications (NASDAQ:SBAC – Get Free Report) and TPG RE Finance Trust (NYSE:TRTX – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Profitability
This table compares SBA Communications and TPG RE Finance Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SBA Communications | 25.76% | -13.13% | 6.83% |
| TPG RE Finance Trust | 19.65% | -7.50% | -2.19% |
Analyst Recommendations
This is a summary of recent ratings and target prices for SBA Communications and TPG RE Finance Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBA Communications | 0 | 4 | 8 | 1 | 2.77 |
| TPG RE Finance Trust | 1 | 0 | 5 | 0 | 2.67 |
Valuation & Earnings
This table compares SBA Communications and TPG RE Finance Trust”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SBA Communications | $2.66 billion | 8.07 | $501.81 million | $6.34 | 31.50 |
| TPG RE Finance Trust | $154.87 million | 4.43 | -$116.63 million | $0.69 | 12.28 |
SBA Communications has higher revenue and earnings than TPG RE Finance Trust. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.
Dividends
SBA Communications pays an annual dividend of $3.92 per share and has a dividend yield of 2.0%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.3%. SBA Communications pays out 61.8% of its earnings in the form of a dividend. 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.
Risk and Volatility
SBA Communications has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500.
Insider and Institutional Ownership
97.3% of SBA Communications shares are held by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are held by institutional investors. 1.3% of SBA Communications 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
SBA Communications beats TPG RE Finance Trust on 13 of the 17 factors compared between the two stocks.
About SBA Communications
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.
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.
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