Contrasting Tejon Ranch (TRC) and Its Competitors

Tejon Ranch (NYSE:TRC) is one of 329 public companies in the “Real Estate Management & Development” industry, but how does it contrast to its peers? We will compare Tejon Ranch to related companies based on the strength of its risk, profitability, valuation, dividends, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Tejon Ranch and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tejon Ranch	10.62%	1.23%	0.95%
Tejon Ranch Competitors	-263.83%	-682.75%	-1.10%

Volatility and Risk

Tejon Ranch has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Tejon Ranch’s peers have a beta of -0.22, suggesting that their average share price is 122% less volatile than the S&P 500.

Insider & Institutional Ownership

60.6% of Tejon Ranch shares are owned by institutional investors. Comparatively, 32.4% of shares of all “Real Estate Management & Development” companies are owned by institutional investors. 21.9% of Tejon Ranch shares are owned by company insiders. Comparatively, 27.1% of shares of all “Real Estate Management & Development” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Tejon Ranch and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tejon Ranch	$56.84 million	$80,000.00	71.98
Tejon Ranch Competitors	$6.70 billion	-$400.32 million	10.02

Tejon Ranch’s peers have higher revenue, but lower earnings than Tejon Ranch. Tejon Ranch is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Tejon Ranch and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tejon Ranch	0	1	0	0	2.00
Tejon Ranch Competitors	1574	4681	7434	207	2.45

As a group, “Real Estate Management & Development” companies have a potential upside of 28.45%. Given Tejon Ranch’s peers stronger consensus rating and higher probable upside, analysts clearly believe Tejon Ranch has less favorable growth aspects than its peers.

Summary

Tejon Ranch beats its peers on 7 of the 13 factors compared.

About Tejon Ranch

Tejon Ranch Co., together with its subsidiaries, operates as a diversified real estate development and agribusiness company. It operates through five segments: Commercial/Industrial Real Estate Development, Resort/Residential Real Estate Development, Mineral Resources, Farming, and Ranch Operations. The Commercial/Industrial Real Estate Development segment engages in the planning and permitting of land for development; construction of infrastructure projects, pre-leased buildings, and buildings to be leased or sold; and sale of land to third parties for their own development. It is also involved in the activities related to communications leases, a power plant lease, and landscape maintenance. This segment leases land to various auto service stations with convenience stores, fast-food operations, service diner-style restaurant, a motel, an antique shop, and a post office; various microwave repeater locations, radio and cellular transmitter sites, and fiber optic cable routes; and package of land for an electric power plant. The Resort/Residential Real Estate Development segment engages in land entitlement, planning, pre-construction engineering, stewardship, and conservation activities. The Mineral Resources segment includes oil and gas royalties, rock and aggregate royalties, and royalties from a cement operation leased to National Cement Company of California, Inc.; and the management of water assets and infrastructure projects. The Farming segment farms permanent crops, such as wine grapes, almonds, and pistachios in package of land. It also manages the farming of alfalfa and forage mix on package of land in the Antelope Valley; and leases package of land for growing vegetables, as well as almonds. The Ranch Operations segment provides game management and ancillary land services comprising grazing leases and filming, as well as various guided hunts. Tejon Ranch Co. was founded in 1843 and is based in Lebec, California.