Head to Head Review: RMR Group (RMR) versus DIGIPATH INC/SH SH (DIGP)

RMR Group (NASDAQ:RMR) and DIGIPATH INC/SH SH (OTCMKTS:DIGP) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Profitability

This table compares RMR Group and DIGIPATH INC/SH SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RMR Group 23.72% 8.70% 7.21%
DIGIPATH INC/SH SH -59.66% -120.14% -103.12%

Volatility & Risk

RMR Group has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, DIGIPATH INC/SH SH has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500.

Earnings & Valuation

This table compares RMR Group and DIGIPATH INC/SH SH’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RMR Group $404.98 million 4.78 $42.29 million $2.33 26.67
DIGIPATH INC/SH SH $1.90 million 3.20 -$1.06 million N/A N/A

RMR Group has higher revenue and earnings than DIGIPATH INC/SH SH.

Institutional and Insider Ownership

18.9% of RMR Group shares are owned by institutional investors. Comparatively, 0.5% of DIGIPATH INC/SH SH shares are owned by institutional investors. 55.3% of RMR Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for RMR Group and DIGIPATH INC/SH SH, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RMR Group 0 1 1 0 2.50
DIGIPATH INC/SH SH 0 0 0 0 N/A

RMR Group currently has a consensus price target of $82.00, suggesting a potential upside of 31.94%. Given RMR Group’s higher possible upside, research analysts clearly believe RMR Group is more favorable than DIGIPATH INC/SH SH.

Dividends

RMR Group pays an annual dividend of $1.40 per share and has a dividend yield of 2.3%. DIGIPATH INC/SH SH does not pay a dividend. RMR Group pays out 60.1% of its earnings in the form of a dividend.

Summary

RMR Group beats DIGIPATH INC/SH SH on 11 of the 13 factors compared between the two stocks.

About RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. It provides management services to its four publicly traded real estate investment trusts (REITs) and three real estate operating companies. As of September 30, 2017, the company had approximately 1,400 properties under management, which are primarily owned by its Managed Equity REITs. It also provides investment advisory services. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in September 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

About DIGIPATH INC/SH SH

Digipath, Inc., together with its subsidiaries, provides cannabis related testing services in the United States. The company offers cannabis lab testing services in Las Vegas to Nevada licensed medical marijuana enterprises. It also provides a balanced and unbiased approach to cannabis news, interviews, and education with a news/talk radio show, app, national marijuana news Website, and social media presence focusing on the political, economic, medicinal, scientific, and cultural dimensions of medicinal and recreational marijuana industry. DigiPath, Inc. was incorporated in 2010 and is headquartered in Las Vegas, Nevada.

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