Analyzing Tejon Ranch (NYSE:TRC) & MJ (OTCMKTS:MJNE)

MJ (OTCMKTS:MJNE) and Tejon Ranch (NYSE:TRC) are both small-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MJ	N/A	N/A	N/A
Tejon Ranch	10.62%	1.23%	0.95%

Insider and Institutional Ownership

60.6% of Tejon Ranch shares are held by institutional investors. 35.9% of MJ shares are held by company insiders. Comparatively, 21.9% of Tejon Ranch shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

MJ has a beta of -0.64, meaning that its share price is 164% less volatile than the S&P 500. Comparatively, Tejon Ranch has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for MJ and Tejon Ranch, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MJ	0	0	0	0	0.00
Tejon Ranch	0	1	0	0	2.00

Earnings & Valuation

This table compares MJ and Tejon Ranch”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MJ	N/A	N/A	N/A	N/A	N/A
Tejon Ranch	$49.59 million	8.90	$80,000.00	$0.23	71.04

Tejon Ranch has higher revenue and earnings than MJ.

Summary

Tejon Ranch beats MJ on 7 of the 8 factors compared between the two stocks.

About MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.

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.