Financial Comparison: reAlpha Tech (NASDAQ:AIRE) vs. Alset (NASDAQ:AEI)

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

Profitability

This table compares reAlpha Tech and Alset’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
reAlpha Tech	-2,035.17%	-45.22%	-36.74%
Alset	-299.22%	-42.91%	-38.02%

Volatility and Risk

reAlpha Tech has a beta of -8.06, suggesting that its share price is 906% less volatile than the S&P 500. Comparatively, Alset has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Institutional and Insider Ownership

1.0% of reAlpha Tech shares are held by institutional investors. Comparatively, 2.7% of Alset shares are held by institutional investors. 73.9% of reAlpha Tech shares are held by insiders. Comparatively, 66.7% of Alset shares are held by 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.

Earnings and Valuation

This table compares reAlpha Tech and Alset”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
reAlpha Tech	N/A	N/A	N/A	N/A	N/A
Alset	$13.19 million	0.66	-$58.95 million	($4.33)	-0.22

reAlpha Tech has higher earnings, but lower revenue than Alset.

Analyst Ratings

This is a summary of current ratings and target prices for reAlpha Tech and Alset, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
reAlpha Tech	0	0	1	0	3.00
Alset	0	0	0	0	0.00

reAlpha Tech presently has a consensus price target of $3.00, indicating a potential upside of 81.93%. Given reAlpha Tech’s stronger consensus rating and higher probable upside, analysts clearly believe reAlpha Tech is more favorable than Alset.

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 Alset

Alset Inc. engages in the real estate development, financial services, digital transformation technologies, biohealth activities, and consumer products businesses in the United States, Singapore, Hong Kong, Australia, and South Korea. It operates through four segments: Real Estate, Digital Transformation Technology, Biohealth, and Other Business Activities segments. The Real Estate segment develops property projects and participates in third-party property development projects; and owns, operates, and manages real estate development projects with a focus on land subdivision developments and house rental projects. Its Digital Transformation Technology segment provides support, implementation, and development services with various technologies, including blockchain, e-commerce, social media, and artificial intelligent customer service application and metaverse services. Its technology platform focuses on business-to-business solutions, such as communications and workflow through instant messaging systems, social media, e-commerce and payment systems, direct marketing platforms, e-real estate, brand protection, and counterfeit and fraud detection; and mobile application product development and other businesses, including information technology services to end-users, service providers, and other commercial users through multiple platforms. The Biohealth segment engages in developing, researching, testing, manufacturing, licensing, and distributing biohealth products and services. Its Other Business Activities segment offers corporate strategy and business development, asset management, corporate restructuring, and leveraged buy-out expertise services. It operates cafes in Singapore and South Korea. The company was formerly known as Alset EHome International Inc. and changed its name to Alset Inc. in October 2022. The company was incorporated in 2018 and is headquartered in Bethesda, Maryland.