Douglas Elliman (NYSE:DOUG) vs. Marcus & Millichap (NYSE:MMI) Critical Contrast

Douglas Elliman (NYSE:DOUG) and Marcus & Millichap (NYSE:MMI) are both small-cap real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Volatility and Risk

Douglas Elliman has a beta of 1.87, indicating that its stock price is 87% more 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.

Valuation & Earnings

This table compares Douglas Elliman and Marcus & Millichap”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Elliman	$1.03 billion	0.14	$15.22 million	$0.17	9.21
Marcus & Millichap	$755.16 million	1.39	-$1.91 million	$0.37	74.65

Douglas Elliman has higher revenue and earnings than Marcus & Millichap. Douglas Elliman is trading at a lower price-to-earnings ratio than Marcus & Millichap, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

59.6% of Douglas Elliman shares are held by institutional investors. Comparatively, 62.8% of Marcus & Millichap shares are held by institutional investors. 9.6% of Douglas Elliman shares are held by company insiders. Comparatively, 39.2% of Marcus & Millichap shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Douglas Elliman	2.47%	-19.16%	-6.72%
Marcus & Millichap	1.77%	2.97%	2.21%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Douglas Elliman and Marcus & Millichap, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Elliman	1	2	0	0	1.67
Marcus & Millichap	1	1	0	0	1.50

Marcus & Millichap has a consensus target price of $28.00, indicating a potential upside of 1.38%. Given Marcus & Millichap’s higher probable upside, analysts plainly believe Marcus & Millichap is more favorable than Douglas Elliman.

Summary

Marcus & Millichap beats Douglas Elliman on 8 of the 13 factors compared between the two stocks.

About Douglas Elliman

Douglas Elliman Inc. owns Douglas Elliman Realty, LLC, operating as a residential brokerage company in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.

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.