Fathom (NASDAQ:FTHM – Get Free Report) and Tejon Ranch (NYSE:TRC – Get Free Report) are both small-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Profitability
This table compares Fathom and Tejon Ranch’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fathom | -6.27% | -75.89% | -33.25% |
| Tejon Ranch | 10.62% | 1.23% | 0.95% |
Risk and Volatility
Fathom has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500. Comparatively, Tejon Ranch has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.
Institutional and Insider Ownership
Earnings and Valuation
This table compares Fathom and Tejon Ranch”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fathom | $420.48 million | 0.02 | -$20.31 million | ($0.80) | -0.27 |
| Tejon Ranch | $49.59 million | 8.81 | $80,000.00 | $0.23 | 70.28 |
Tejon Ranch has lower revenue, but higher earnings than Fathom. Fathom is trading at a lower price-to-earnings ratio than Tejon Ranch, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Fathom and Tejon Ranch, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fathom | 1 | 0 | 0 | 1 | 2.50 |
| Tejon Ranch | 0 | 1 | 0 | 0 | 2.00 |
Fathom presently has a consensus target price of $2.50, indicating a potential upside of 1,057.41%. Given Fathom’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Fathom is more favorable than Tejon Ranch.
Summary
Tejon Ranch beats Fathom on 9 of the 14 factors compared between the two stocks.
About Fathom
Fathom Holdings Inc. provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers. It offers access to various properties for sale or lease through its FathomRealty.com website to buyers, sellers, landlords, and tenants; insurance agency services; and title services. In addition, the company provides intelliAgent, a real estate technology platform that offers a suite of brokerage and agent level tools, technology, business processes, business intelligence and reporting, and training; transaction, personnel, customer relationship, and accounting management for agent transactions; and reporting, social media marketing, and other marketing and marketing repository services, as well as marketplace for add-on services and third-party technology. Its brands include Fathom Realty, Dagley Insurance, Encompass Lending, intelliAgent, LiveBy, Real Results, Verus Title, and Cornerstone. The company was founded in 2010 and is headquartered in Cary, North Carolina.
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.
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