Marcus & Millichap (NYSE:MMI – Get Free Report) and reAlpha Tech (NASDAQ:AIRE – Get Free Report) are both small-cap real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and target prices for Marcus & Millichap and reAlpha Tech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marcus & Millichap | 1 | 1 | 0 | 0 | 1.50 |
| reAlpha Tech | 1 | 0 | 1 | 0 | 2.00 |
Marcus & Millichap currently has a consensus target price of $28.00, indicating a potential downside of 9.26%. reAlpha Tech has a consensus target price of $50.00, indicating a potential upside of 3,396.50%. Given reAlpha Tech’s stronger consensus rating and higher possible upside, analysts plainly believe reAlpha Tech is more favorable than Marcus & Millichap.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Marcus & Millichap | 1.77% | 2.97% | 2.21% |
| reAlpha Tech | -419.95% | -198.91% | -97.12% |
Volatility & Risk
Marcus & Millichap has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, reAlpha Tech has a beta of -2.64, meaning that its stock price is 364% less volatile than the S&P 500.
Institutional and Insider Ownership
62.8% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 1.0% of reAlpha Tech shares are owned by institutional investors. 39.9% of Marcus & Millichap shares are owned by company insiders. Comparatively, 39.6% of reAlpha Tech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Marcus & Millichap and reAlpha Tech”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marcus & Millichap | $755.16 million | 1.55 | -$1.91 million | $0.37 | 83.40 |
| reAlpha Tech | $4.52 million | 1.90 | -$17.59 million | ($3.32) | -0.43 |
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.
Summary
Marcus & Millichap beats reAlpha Tech on 10 of the 14 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 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.
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