Marcus & Millichap (NYSE:MMI – Get Free Report) and American Strategic Investment (NYSE:NYC – Get Free Report) are both small-cap real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Risk and Volatility
Marcus & Millichap has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, American Strategic Investment has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.
Earnings & Valuation
This table compares Marcus & Millichap and American Strategic Investment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marcus & Millichap | $755.16 million | 1.38 | -$1.91 million | $0.37 | 74.18 |
| American Strategic Investment | $43.28 million | 0.44 | -$21.19 million | $4.90 | 1.24 |
Marcus & Millichap has higher revenue and earnings than American Strategic Investment. American Strategic Investment 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 Marcus & Millichap and American Strategic Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Marcus & Millichap | 1.77% | 2.97% | 2.21% |
| American Strategic Investment | 38.87% | -50.85% | -7.02% |
Insider & Institutional Ownership
62.8% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 48.0% of American Strategic Investment shares are owned by institutional investors. 39.9% of Marcus & Millichap shares are owned by company insiders. Comparatively, 4.0% of American Strategic Investment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Marcus & Millichap and American Strategic Investment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marcus & Millichap | 1 | 1 | 0 | 0 | 1.50 |
| American Strategic Investment | 1 | 0 | 0 | 0 | 1.00 |
Marcus & Millichap presently has a consensus price target of $28.00, suggesting a potential upside of 2.02%. Given Marcus & Millichap’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Marcus & Millichap is more favorable than American Strategic Investment.
Summary
Marcus & Millichap beats American Strategic Investment 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 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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