AMREP (NYSE:AXR – Get Free Report) and Marcus & Millichap (NYSE:MMI – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Insider & Institutional Ownership
59.9% of AMREP shares are owned by institutional investors. Comparatively, 62.8% of Marcus & Millichap shares are owned by institutional investors. 37.2% of AMREP shares are owned by insiders. Comparatively, 39.2% of Marcus & Millichap shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
AMREP has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AMREP | $49.69 million | 2.25 | $12.72 million | $1.95 | 10.78 |
| Marcus & Millichap | $696.06 million | 1.50 | -$12.36 million | ($0.16) | -167.71 |
AMREP has higher earnings, but lower revenue than Marcus & Millichap. Marcus & Millichap is trading at a lower price-to-earnings ratio than AMREP, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for AMREP and Marcus & Millichap, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AMREP | 0 | 1 | 0 | 0 | 2.00 |
| Marcus & Millichap | 2 | 2 | 0 | 0 | 1.50 |
Marcus & Millichap has a consensus target price of $29.00, indicating a potential upside of 8.08%. Given Marcus & Millichap’s higher possible upside, analysts plainly believe Marcus & Millichap is more favorable than AMREP.
Profitability
This table compares AMREP and Marcus & Millichap’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AMREP | 22.86% | 7.98% | 7.73% |
| Marcus & Millichap | -0.89% | -0.58% | -0.43% |
Summary
AMREP beats Marcus & Millichap on 9 of the 13 factors compared between the two stocks.
About AMREP
AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.
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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