Reviewing Terreno Realty (TRNO) and Leju (LEJU)

Terreno Realty (NYSE: TRNO) and Leju (NYSE:LEJU) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Dividends

Terreno Realty pays an annual dividend of $0.88 per share and has a dividend yield of 2.3%. Leju does not pay a dividend. Terreno Realty pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty has increased its dividend for 5 consecutive years.

Profitability

This table compares Terreno Realty and Leju’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terreno Realty 40.11% 5.59% 3.62%
Leju -40.88% -57.49% -34.52%

Valuation and Earnings

This table compares Terreno Realty and Leju’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Terreno Realty $132.48 million 15.92 $53.09 million $1.09 34.56
Leju $362.53 million 0.55 -$160.90 million ($1.19) -1.23

Terreno Realty has higher earnings, but lower revenue than Leju. Leju is trading at a lower price-to-earnings ratio than Terreno Realty, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

98.6% of Terreno Realty shares are owned by institutional investors. Comparatively, 2.5% of Leju shares are owned by institutional investors. 2.6% of Terreno Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Terreno Realty and Leju, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terreno Realty 0 4 7 0 2.64
Leju 0 0 0 0 N/A

Terreno Realty currently has a consensus price target of $38.50, suggesting a potential upside of 2.20%. Given Terreno Realty’s higher probable upside, research analysts clearly believe Terreno Realty is more favorable than Leju.

Volatility & Risk

Terreno Realty has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Leju has a beta of 3.07, indicating that its stock price is 207% more volatile than the S&P 500.

Summary

Terreno Realty beats Leju on 13 of the 16 factors compared between the two stocks.

Terreno Realty Company Profile

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. Additional information about Terreno Realty Corporation is available on the company's web site at www.terreno.com.

Leju Company Profile

Leju Holdings Ltd. engages in the online-to-offline real estate business. It offers electronic commerce, online advertising, and listing services on new residential property sales. The company was founded on November 19, 2013 and is headquartered in Dongcheng, China.

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