Reviewing TPG RE Finance Trust (NYSE:TRTX) and WillScot (NASDAQ:WSC)

WillScot (NASDAQ:WSC) and TPG RE Finance Trust (NYSE:TRTX) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares WillScot and TPG RE Finance Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WillScot	$2.40 billion	1.49	$28.13 million	$1.21	16.17
TPG RE Finance Trust	$351.97 million	2.05	$74.33 million	$0.65	14.18

TPG RE Finance Trust has lower revenue, but higher earnings than WillScot. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than WillScot, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

95.8% of WillScot shares are owned by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are owned by institutional investors. 3.1% of WillScot shares are owned by insiders. Comparatively, 2.5% of TPG RE Finance Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for WillScot and TPG RE Finance Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WillScot	1	4	4	1	2.50
TPG RE Finance Trust	0	3	3	1	2.71

WillScot currently has a consensus price target of $26.63, indicating a potential upside of 36.12%. TPG RE Finance Trust has a consensus price target of $10.75, indicating a potential upside of 16.61%. Given WillScot’s higher possible upside, equities analysts plainly believe WillScot is more favorable than TPG RE Finance Trust.

Dividends

WillScot pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 10.4%. WillScot pays out 23.1% of its earnings in the form of a dividend. TPG RE Finance Trust pays out 147.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares WillScot and TPG RE Finance Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WillScot	9.64%	23.09%	3.93%
TPG RE Finance Trust	20.46%	6.37%	1.76%

Risk & Volatility

WillScot has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Summary

WillScot beats TPG RE Finance Trust on 10 of the 16 factors compared between the two stocks.

About WillScot

WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers. The company leases modular space and portable storage units to customers in the construction, commercial and industrial, retail and wholesale trade, energy and natural resources, education, government and institutions, and healthcare markets. The company offers its solutions primarily under the WillScot and Mobile Mini brand names. The company was formerly known as WillScot Mobile Mini Holdings Corp. and changed its name to WillScot Holdings Corporation in July 2024. WillScot Mobile Mini Holdings Corp. is headquartered in Phoenix, Arizona.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.