Head to Head Comparison: Marcus & Millichap (NYSE:MMI) versus Real Brokerage (NASDAQ:REAX)

Marcus & Millichap (NYSE:MMIGet Rating) and Real Brokerage (NASDAQ:REAXGet Rating) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Marcus & Millichap 11.19% 24.65% 17.24%
Real Brokerage -6.99% -36.40% -25.80%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Marcus & Millichap and Real Brokerage, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marcus & Millichap 1 0 0 0 1.00
Real Brokerage 0 0 1 0 3.00

Marcus & Millichap presently has a consensus price target of $40.00, indicating a potential downside of 4.05%. Real Brokerage has a consensus price target of $3.00, indicating a potential upside of 74.42%. Given Real Brokerage’s stronger consensus rating and higher possible upside, analysts plainly believe Real Brokerage is more favorable than Marcus & Millichap.

Valuation and Earnings

This table compares Marcus & Millichap and Real Brokerage’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marcus & Millichap $1.30 billion 1.25 $142.47 million $3.96 10.53
Real Brokerage $121.68 million 2.52 -$11.68 million ($0.11) -15.64

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

Institutional and Insider Ownership

59.0% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 21.4% of Real Brokerage shares are owned by institutional investors. 38.8% of Marcus & Millichap shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Marcus & Millichap beats Real Brokerage on 9 of the 13 factors compared between the two stocks.

Marcus & Millichap Company Profile (Get Rating)

Marcus & Millichap, Inc., an investment brokerage company, provides real estate investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada. The company offers commercial real estate investment sales, financing, research, and advisory services for multifamily, retail, office, industrial, single-tenant net lease, seniors housing, self-storage, hospitality, medical office, and manufactured housing. It also operates as a financial intermediary that provides commercial real estate capital markets solutions, including senior debt, mezzanine debt, joint venture, and preferred equity, as well as loan sales and consultative/due diligence services to commercial real estate owners, developers, investors, and capital providers. In addition, the company provides various ancillary services, including research, advisory, and consulting services to developers, lenders, owners, real estate investment trusts, high net worth individuals, pension fund advisors, and other institutions. Marcus & Millichap, Inc. was founded in 1971 and is headquartered in Calabasas, California.

Real Brokerage Company Profile (Get Rating)

The Real Brokerage Inc., together with its subsidiaries, operates as a technology-powered real estate brokerage company. It provides brokerage services for the real estate market through a network of agents. The company offers agents a mobile-focused tech platform to run its business, as well as business terms and wealth-building opportunities. It operates in 42 states in the United States, the District of Columbia, and Canada. The Real Brokerage Inc. is headquartered in Toronto, Canada.

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