Head to Head Analysis: Grow Capital (OTCMKTS:GRWC) & Marcus & Millichap (NYSE:MMI)

Grow Capital (OTCMKTS:GRWC) and Marcus & Millichap (NYSE:MMI) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Volatility & Risk

Grow Capital has a beta of 25.94, indicating that its stock price is 2,494% more volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Earnings and Valuation

This table compares Grow Capital and Marcus & Millichap”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grow Capital	$3.01 million	17.18	-$3.62 million	N/A	N/A
Marcus & Millichap	$696.06 million	1.66	-$12.36 million	($0.31)	-95.35

Grow Capital has higher earnings, but lower revenue than Marcus & Millichap.

Profitability

This table compares Grow Capital and Marcus & Millichap’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grow Capital	-119.94%	N/A	N/A
Marcus & Millichap	-1.69%	-1.99%	-1.49%

Institutional and Insider Ownership

62.8% of Marcus & Millichap shares are held by institutional investors. 43.9% of Grow Capital shares are held by insiders. Comparatively, 39.9% of Marcus & Millichap shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Grow Capital and Marcus & Millichap, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grow Capital	0	0	0	0	0.00
Marcus & Millichap	1	2	0	0	1.67

Summary

Grow Capital beats Marcus & Millichap on 7 of the 11 factors compared between the two stocks.

About Grow Capital

Grow Capital, Inc. operates in the financial technology sector. It provides software, technology, and services to financial services firms and advisors. The company's software suite delivers customized back office compliance, multi-pay commission processing, and new client application submission system, as well as digital engagement marketing services centric to financial services. It also provides software customization, licensing, and subscription service contracts, as well as ongoing customization and maintenance services; and ad hoc services, including web hosting, website development, and other complementary professional services. The company was incorporated in 1999 and is based in Henderson, Nevada.

About Marcus & Millichap

Marcus & Millichap, Inc. engages in the provision of investment real estate brokerage services. It specializes in commercial real estate investment sales, property financing, research, and advisory services. The company was founded by George M. Marcus and William A. Millichap in 1971 and is headquartered in Calabasas, CA.