reAlpha Tech (NASDAQ:AIRE – Get Free Report) and Marcus & Millichap (NYSE:MMI – Get Free Report) are both small-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Volatility & Risk
reAlpha Tech has a beta of -2.64, indicating that its share price is 364% less volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Valuation and Earnings
This table compares reAlpha Tech and Marcus & Millichap”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| reAlpha Tech | $4.52 million | 1.87 | -$17.59 million | ($3.32) | -0.42 |
| Marcus & Millichap | $755.16 million | 1.50 | -$1.91 million | $0.37 | 80.99 |
Marcus & Millichap has higher revenue and earnings than reAlpha Tech. reAlpha Tech is trading at a lower price-to-earnings ratio than Marcus & Millichap, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares reAlpha Tech and Marcus & Millichap’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| reAlpha Tech | -419.95% | -198.91% | -97.12% |
| Marcus & Millichap | 1.77% | 2.97% | 2.21% |
Analyst Ratings
This is a summary of recent recommendations and price targets for reAlpha Tech and Marcus & Millichap, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| reAlpha Tech | 1 | 0 | 1 | 0 | 2.00 |
| Marcus & Millichap | 1 | 1 | 0 | 0 | 1.50 |
reAlpha Tech currently has a consensus target price of $50.00, suggesting a potential upside of 3,446.10%. Marcus & Millichap has a consensus target price of $28.00, suggesting a potential downside of 6.56%. Given reAlpha Tech’s stronger consensus rating and higher probable upside, equities research analysts clearly believe reAlpha Tech is more favorable than Marcus & Millichap.
Insider and Institutional Ownership
1.0% of reAlpha Tech shares are held by institutional investors. Comparatively, 62.8% of Marcus & Millichap shares are held by institutional investors. 39.6% of reAlpha Tech shares are held by company insiders. Comparatively, 39.2% of Marcus & Millichap shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Marcus & Millichap beats reAlpha Tech on 9 of the 14 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 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.
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