Intergroup (NASDAQ:INTG) vs. Marcus & Millichap (NYSE:MMI) Critical Contrast

Marcus & Millichap (NYSE:MMI) and Intergroup (NASDAQ:INTG) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Earnings & Valuation

This table compares Marcus & Millichap and Intergroup”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marcus & Millichap	$755.16 million	1.33	-$1.91 million	($0.04)	-644.08
Intergroup	$64.38 million	0.93	-$5.35 million	($0.57)	-48.68

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

Institutional and Insider Ownership

62.8% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 3.4% of Intergroup shares are owned by institutional investors. 39.2% of Marcus & Millichap shares are owned by insiders. Comparatively, 74.1% of Intergroup shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Marcus & Millichap and Intergroup, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus & Millichap	2	1	0	0	1.33
Intergroup	1	0	0	0	1.00

Marcus & Millichap currently has a consensus target price of $28.00, indicating a potential upside of 8.68%. Given Marcus & Millichap’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Marcus & Millichap is more favorable than Intergroup.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marcus & Millichap	-0.25%	0.20%	0.15%
Intergroup	-1.82%	N/A	-1.21%

Volatility and Risk

Marcus & Millichap has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Intergroup has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Summary

Marcus & Millichap beats Intergroup on 11 of the 13 factors compared between the two stocks.

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.

About Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.