Contrasting Marcus & Millichap (MMI) and Its Peers

Marcus & Millichap (NYSE:MMI) is one of 31 publicly-traded companies in the “REAL ESTATE DEV” industry, but how does it contrast to its rivals? We will compare Marcus & Millichap to related businesses based on the strength of its dividends, analyst recommendations, institutional ownership, earnings, profitability, valuation and risk.

Earnings & Valuation

This table compares Marcus & Millichap and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Marcus & Millichap	$696.06 million	-$12.36 million	-173.86
Marcus & Millichap Competitors	$1.49 billion	-$82.46 million	1.75

Marcus & Millichap’s rivals have higher revenue, but lower earnings than Marcus & Millichap. Marcus & Millichap is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Marcus & Millichap and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus & Millichap	-0.89%	-0.58%	-0.43%
Marcus & Millichap Competitors	-14.21%	-44.10%	-1.59%

Volatility and Risk

Marcus & Millichap has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Marcus & Millichap’s rivals have a beta of -6.34, meaning that their average stock price is 734% less volatile than the S&P 500.

Dividends

Marcus & Millichap pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. Marcus & Millichap pays out -312.5% of its earnings in the form of a dividend. As a group, “REAL ESTATE DEV” companies pay a dividend yield of 2.1% and pay out 33.7% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings for Marcus & Millichap and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus & Millichap	2	2	0	0	1.50
Marcus & Millichap Competitors	189	667	296	11	2.11

Marcus & Millichap currently has a consensus price target of $29.00, suggesting a potential upside of 4.25%. As a group, “REAL ESTATE DEV” companies have a potential upside of 15.97%. Given Marcus & Millichap’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Marcus & Millichap has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

62.8% of Marcus & Millichap shares are held by institutional investors. Comparatively, 52.7% of shares of all “REAL ESTATE DEV” companies are held by institutional investors. 39.2% of Marcus & Millichap shares are held by company insiders. Comparatively, 38.3% of shares of all “REAL ESTATE DEV” companies are held by company 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.

Summary

Marcus & Millichap beats its rivals on 8 of the 15 factors compared.

Marcus & Millichap Company Profile

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.