Compass (NYSE:COMP – Get Free Report) and KE (NYSE:BEKE – Get Free Report) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Risk and Volatility
Compass has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500. Comparatively, KE has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500.
Insider & Institutional Ownership
67.0% of Compass shares are owned by institutional investors. Comparatively, 39.3% of KE shares are owned by institutional investors. 2.9% of Compass shares are owned by company insiders. Comparatively, 6.8% of KE shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Compass | 0.63% | 3.62% | 1.37% |
| KE | 5.38% | 7.62% | 4.38% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Compass and KE, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Compass | 0 | 6 | 10 | 1 | 2.71 |
| KE | 0 | 1 | 6 | 1 | 3.00 |
Compass currently has a consensus target price of $13.43, suggesting a potential upside of 53.56%. KE has a consensus target price of $23.64, suggesting a potential upside of 34.82%. Given Compass’ higher possible upside, research analysts clearly believe Compass is more favorable than KE.
Earnings and Valuation
This table compares Compass and KE”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Compass | $6.96 billion | 0.95 | -$58.50 million | $0.06 | 145.75 |
| KE | $13.52 billion | 1.45 | $428.13 million | $0.61 | 28.75 |
KE has higher revenue and earnings than Compass. KE is trading at a lower price-to-earnings ratio than Compass, indicating that it is currently the more affordable of the two stocks.
Summary
KE beats Compass on 9 of the 14 factors compared between the two stocks.
About Compass
Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports. It also provides full-service title and escrow/settlement services to real estate agents' clients, real estate companies, and financial institutions relating to the closing of home purchases as well as the refinancing of home loans; and Compass Concierge, a program in which home sellers access to capital to front the cost of home improvement services. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was incorporated in 2012 and is headquartered in New York, New York.
About KE
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
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