reAlpha Tech (NASDAQ:AIRE – Get Free Report) and Marcus & Millichap (NYSE:MMI – Get Free Report) are both small-cap real estate companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Earnings & Valuation
This table compares reAlpha Tech and Marcus & Millichap”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| reAlpha Tech | $4.52 million | 0.49 | -$17.59 million | ($3.32) | -0.11 |
| Marcus & Millichap | $755.16 million | 1.22 | -$1.91 million | $0.39 | 62.21 |
Marcus & Millichap has higher revenue and earnings than reAlpha Tech. reAlpha Tech is trading at a lower price-to-earnings ratio than Marcus & Millichap, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for reAlpha Tech and Marcus & Millichap, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| reAlpha Tech | 1 | 0 | 1 | 0 | 2.00 |
| Marcus & Millichap | 2 | 0 | 0 | 0 | 1.00 |
reAlpha Tech presently has a consensus price target of $50.00, indicating a potential upside of 13,636.26%. Marcus & Millichap has a consensus price target of $28.00, indicating a potential upside of 15.42%. Given reAlpha Tech’s stronger consensus rating and higher possible upside, equities research analysts plainly believe reAlpha Tech is more favorable than Marcus & Millichap.
Insider and Institutional Ownership
1.0% of reAlpha Tech shares are owned by institutional investors. Comparatively, 62.8% of Marcus & Millichap shares are owned by institutional investors. 21.5% of reAlpha Tech shares are owned by insiders. Comparatively, 39.2% of Marcus & Millichap 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.
Volatility & Risk
reAlpha Tech has a beta of -2.29, indicating that its stock price is 329% less volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Profitability
This table compares reAlpha Tech and Marcus & Millichap’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| reAlpha Tech | -419.95% | -198.91% | -97.12% |
| Marcus & Millichap | 1.83% | 2.60% | 1.93% |
Summary
Marcus & Millichap beats reAlpha Tech on 11 of the 14 factors compared between the two stocks.
About reAlpha Tech
reAlpha Tech Corp. (NASDAQ:AIRE) is a real estate technology company focused on using artificial intelligence to simplify and improve the residential home-buying process. Its technology is intended to help consumers search for properties, evaluate homes, navigate transactions and connect with related services through a more integrated digital platform. The company has also developed and pursued technology-enabled real estate investment and brokerage offerings. Historically, reAlpha operated a platform designed to provide individuals with access to fractional ownership opportunities in short-term rental properties, allowing users to participate in real estate investments without purchasing an entire property. reAlpha was founded in 2020 and is based in Dublin, Ohio.
About Marcus & Millichap
Marcus & Millichap is a commercial real estate brokerage specializing in the sale, financing, and advisory of investment properties. Its services include investment sales, debt and equity financing, and research and market analysis for property owners, investors, and other real estate clients. Founded in 1971, the company serves clients across the United States and Canada through a network of offices and investment professionals. Its financing services include arranging loans and other capital for commercial real estate transactions.
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