Grow Capital (OTCMKTS:GRWC) versus Transcontinental Realty Investors (NYSE:TCI) Critical Analysis

Transcontinental Realty Investors (NYSE:TCI) and Grow Capital (OTCMKTS:GRWC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares Transcontinental Realty Investors and Grow Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	11.52%	0.30%	0.23%
Grow Capital	-117.42%	N/A	N/A

Volatility and Risk

Transcontinental Realty Investors has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Grow Capital has a beta of 29.37, suggesting that its share price is 2,837% more volatile than the S&P 500.

Valuation & Earnings

This table compares Transcontinental Realty Investors and Grow Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$46.08 million	10.59	$5.86 million	$0.64	88.23
Grow Capital	$3.01 million	16.70	-$3.62 million	($0.03)	-10.99

Transcontinental Realty Investors has higher revenue and earnings than Grow Capital. Grow Capital is trading at a lower price-to-earnings ratio than Transcontinental Realty Investors, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Transcontinental Realty Investors and Grow Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	1	0	0	2.00
Grow Capital	0	0	0	0	0.00

Summary

Transcontinental Realty Investors beats Grow Capital on 8 of the 10 factors compared between the two stocks.

About Transcontinental Realty Investors

Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables.

About Grow Capital

Grow Capital, Inc. operates in the financial technology sector. It provides software, technology, and services to financial services firms and advisors. The company's software suite delivers customized back office compliance, multi-pay commission processing, and new client application submission system, as well as digital engagement marketing services centric to financial services. It also provides software customization, licensing, and subscription service contracts, as well as ongoing customization and maintenance services; and ad hoc services, including web hosting, website development, and other complementary professional services. The company was incorporated in 1999 and is based in Henderson, Nevada.