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

Risk and Volatility

Reis has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Valuation and Earnings

This table compares Reis and Marcus & Millichap’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Reis $46.83 million 5.08 $7.34 million $0.15 137.67
Marcus & Millichap $706.39 million 1.44 $105.37 million $1.59 16.82

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

Dividends

Reis pays an annual dividend of $0.68 per share and has a dividend yield of 3.3%. Marcus & Millichap does not pay a dividend. Reis pays out 453.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

59.7% of Reis shares are held by institutional investors. Comparatively, 41.2% of Marcus & Millichap shares are held by institutional investors. 21.6% of Reis shares are held by company insiders. Comparatively, 58.3% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Reis and Marcus & Millichap, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reis 0 0 2 0 3.00
Marcus & Millichap 0 3 0 0 2.00

Reis presently has a consensus price target of $24.50, suggesting a potential upside of 18.64%. Marcus & Millichap has a consensus price target of $27.00, suggesting a potential upside of 0.93%. Given Reis’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Reis is more favorable than Marcus & Millichap.

Profitability

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

Net Margins Return on Equity Return on Assets
Reis 3.66% 1.73% 1.35%
Marcus & Millichap 8.75% 24.81% 17.09%

Summary

Marcus & Millichap beats Reis on 9 of the 16 factors compared between the two stocks.

Reis Company Profile

Reis, Inc. (Reis) is engaged in providing commercial real estate market information and analytical tools to real estate professionals, through its Reis Services subsidiary. The Company operates through Reis Services segment. It maintains a database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the United States. The database contains information on apartment, office, retail, warehouse or distribution, flex or research and development, self-storage and seniors housing properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. Its product portfolio includes Reis Subscriber Edition (SE), its delivery platform aimed at larger and mid-sized enterprises; ReisReports, aimed at prosumers and smaller enterprises, and Mobiuss Portfolio CRE (Mobiuss), aimed at risk managers and credit administrators at banks and non-bank lending institutions.

Marcus & Millichap Company Profile

Marcus & Millichap, Inc. is a brokerage company specializing in commercial real estate investment sales, financing, research and advisory services. The Company offers three primary services to its clients: commercial real estate investment brokerage, financing, and ancillary services, including other research, advisory and consulting services. It provides its financing services through Marcus & Millichap Capital Corporation, which is a broker of debt financing for commercial properties. Its research, advisory and consulting services are designed to assist clients in forming their investment strategy and making transaction decisions. Its advisory services include opinions of value, operating and financial performance benchmarking analysis, and specific asset buy-sell strategies. As of December 31, 2016, the Company had over 1,700 investment sales and financing professionals in 82 offices in the United States and Canada that provide investment brokerage and financing services.

Receive News & Ratings for Reis Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Reis Inc and related companies with MarketBeat.com's FREE daily email newsletter.