Financial Contrast: Tejon Ranch (NYSE:TRC) versus Pico (NYSE:PICO)

Tejon Ranch (NYSE:TRC) and Pico (NASDAQ:PICO) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

Tejon Ranch has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Pico has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Insider & Institutional Ownership

70.8% of Tejon Ranch shares are held by institutional investors. Comparatively, 69.6% of Pico shares are held by institutional investors. 19.8% of Tejon Ranch shares are held by insiders. Comparatively, 10.4% of Pico shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Tejon Ranch and Pico, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tejon Ranch 0 0 0 0 N/A
Pico 0 0 0 0 N/A

Earnings & Valuation

This table compares Tejon Ranch and Pico’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tejon Ranch $45.62 million 9.23 $4.26 million N/A N/A
Pico $13.05 million 15.50 -$3.33 million N/A N/A

Tejon Ranch has higher revenue and earnings than Pico.

Profitability

This table compares Tejon Ranch and Pico’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tejon Ranch 2.88% 0.27% 0.22%
Pico 31.37% 3.88% 3.82%

Summary

Pico beats Tejon Ranch on 5 of the 9 factors compared between the two stocks.

About Tejon Ranch

Tejon Ranch Co. 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 entitling, planning, and permitting of land for development; construction of infrastructure; construction of 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, and landscape maintenance. This segment leases land to 2 auto service stations with convenience stores, 13 fast-food operations, 2 full-service restaurants, a motel, an antique shop, and a post office; various microwave repeater locations, radio and cellular transmitter sites, and fiber optic cable routes; and 32 acres of land for an electric power plant. The Resort/Residential Real Estate Development segment engages in the land entitlement, land planning and pre-construction engineering, land 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 water infrastructure. The Farming segment farms permanent crops, including wine grapes in 1,197 acres, almonds in 1,966 acres, and pistachios in 1,062 acres. It also manages the farming of alfalfa and forage mix on 775 acres in the Antelope Valley; and leases 1,000 acres of land for growing vegetables, as well as permanent crops. The Ranch Operations segment offers game management and ancillary land services comprising grazing leases and filming, as well as various guided hunts. The company was founded in 1843 and is headquartered in Lebec, California.

About Pico

PICO Holdings, Inc., together with its subsidiaries, engages in the water resource and water storage activities in the southwestern United States. It engages in selling its water rights and storage credits in Arizona, Colorado, Nevada, and New Mexico. The Company sells its water rights to real estate developers, power generating facilities, or other commercial and industrial users, as well as to water utilities, municipalities, and other government agencies; and sells its stored water to state agencies, commercial developers, or municipalities for their commercial projects or communities. It also leases and sells water assets and land. PICO Holdings, Inc. was founded in 1981 and is based in Carson City, Nevada.

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