Offerpad Solutions (NYSE:OPAD – Get Free Report) and American Strategic Investment (NYSE:NYC – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
39.4% of Offerpad Solutions shares are held by institutional investors. Comparatively, 48.0% of American Strategic Investment shares are held by institutional investors. 40.6% of Offerpad Solutions shares are held by company insiders. Comparatively, 1.7% of American Strategic Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Offerpad Solutions and American Strategic Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Offerpad Solutions | -8.74% | -147.32% | -19.97% |
| American Strategic Investment | -40.92% | -97.07% | -13.64% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Offerpad Solutions | 1 | 5 | 1 | 0 | 2.00 |
| American Strategic Investment | 1 | 0 | 0 | 0 | 1.00 |
Offerpad Solutions currently has a consensus price target of $2.73, indicating a potential upside of 55.11%. Given Offerpad Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Offerpad Solutions is more favorable than American Strategic Investment.
Risk and Volatility
Offerpad Solutions has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500. Comparatively, American Strategic Investment has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.
Valuation & Earnings
This table compares Offerpad Solutions and American Strategic Investment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Offerpad Solutions | $918.82 million | 0.07 | -$62.16 million | ($1.94) | -0.91 |
| American Strategic Investment | $61.57 million | 0.34 | -$140.59 million | ($8.78) | -0.90 |
Offerpad Solutions has higher revenue and earnings than American Strategic Investment. Offerpad Solutions is trading at a lower price-to-earnings ratio than American Strategic Investment, indicating that it is currently the more affordable of the two stocks.
Summary
Offerpad Solutions beats American Strategic Investment on 9 of the 14 factors compared between the two stocks.
About Offerpad Solutions
Offerpad Solutions Inc., together with its subsidiaries, provides technology-enabled solutions for residential real estate market in the United States. It operates iBuying, a real estate solutions platform for on-demand customer that provides home buyers the opportunity to browse and tour homes online. It buys and sells homes through cash offer and listing services. In addition, the company offers renovation services; and ancillary products and services, including mortgage, title insurance, and escrow services, as well as Offerpad Bundle Rewards program that allows customers to receive various discounts when selling and buying a home. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.
About American Strategic Investment
American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City.
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