Financial Survey: reAlpha Tech (NASDAQ:AIRE) and Office Properties Income Trust (NASDAQ:OPI)

reAlpha Tech (NASDAQ:AIRE) and Office Properties Income Trust (NASDAQ:OPI) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Valuation & Earnings

This table compares reAlpha Tech and Office Properties Income Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
reAlpha Tech	$310,000.00	165.09	N/A	N/A	N/A
Office Properties Income Trust	$533.55 million	0.23	-$69.43 million	($1.54)	-1.62

reAlpha Tech has higher earnings, but lower revenue than Office Properties Income Trust.

Profitability

This table compares reAlpha Tech and Office Properties Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
reAlpha Tech	2,124.92%	23.53%	19.31%
Office Properties Income Trust	-13.72%	-5.76%	-1.85%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for reAlpha Tech and Office Properties Income Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
reAlpha Tech	0	0	0	0	N/A
Office Properties Income Trust	1	0	1	0	2.00

Office Properties Income Trust has a consensus target price of $4.30, indicating a potential upside of 72.69%. Given Office Properties Income Trust’s higher possible upside, analysts clearly believe Office Properties Income Trust is more favorable than reAlpha Tech.

Institutional and Insider Ownership

1.0% of reAlpha Tech shares are owned by institutional investors. Comparatively, 64.4% of Office Properties Income Trust shares are owned by institutional investors. 2.0% of Office Properties Income Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Office Properties Income Trust beats reAlpha Tech on 5 of the 9 factors compared between the two stocks.

About reAlpha Tech

reAlpha Tech Corp., a real estate technology company, commercializes artificial intelligence (AI)-powered technologies. The company operates in two segments, Platform Services and Rental Business. The company offers and develops AI-based products and services to customers in the real-estate industry. These include reAlpha BRAIN, which utilizes a natural language processing program to scan through property data and choose the ones with a higher than expected industry standard return on investment; reAlpha HUMINT, which allows analysts to input qualitative features about a property and factor it into property evaluation; GENA to generate home descriptions; AIRE, a web-based AI application that provides data and insights about the real estate market; and reAlpha App, which allows syndicate members to acquire equity interests in the syndication LLC. It also leases short-term rental properties; and provides technical support services. The company was formerly known as eAlpha Asset Management, Inc. and changed its name to reAlpha Tech Corp. in March 2023. reAlpha Tech Corp. was founded in 2020 and is headquartered in Dublin, Ohio.

About Office Properties Income Trust

OPI is a national REIT focused on owning and leasing high quality office and mixed-use properties in select growth-oriented U.S. markets. As of December 31, 2023, approximately 64% of OPI's revenues were from investment grade rated tenants. OPI owned 152 properties as of December 31, 2023, with approximately 20.5 million square feet located in 30 states and Washington, D.C. In 2023, OPI was named as an Energy Star® Partner of the Year for the sixth consecutive year. OPI is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. OPI is headquartered in Newton, MA.