Real Brokerage (NASDAQ:REAX – Get Free Report) and SunCar Technology Group (NASDAQ:SDA – Get Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Risk and Volatility
Real Brokerage has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, SunCar Technology Group has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.
Earnings and Valuation
This table compares Real Brokerage and SunCar Technology Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Real Brokerage | $1.26 billion | 0.62 | -$26.54 million | ($0.04) | -92.75 |
| SunCar Technology Group | $441.90 million | 0.46 | -$68.66 million | ($0.07) | -28.14 |
Real Brokerage has higher revenue and earnings than SunCar Technology Group. Real Brokerage is trading at a lower price-to-earnings ratio than SunCar Technology Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Real Brokerage and SunCar Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Real Brokerage | -0.58% | -25.22% | -8.76% |
| SunCar Technology Group | N/A | N/A | N/A |
Institutional & Insider Ownership
53.3% of Real Brokerage shares are owned by institutional investors. Comparatively, 0.3% of SunCar Technology Group shares are owned by institutional investors. 38.2% of Real Brokerage shares are owned by company insiders. Comparatively, 22.2% of SunCar Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for Real Brokerage and SunCar Technology Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Real Brokerage | 1 | 0 | 2 | 1 | 2.75 |
| SunCar Technology Group | 1 | 0 | 2 | 0 | 2.33 |
Real Brokerage presently has a consensus price target of $6.50, indicating a potential upside of 75.20%. SunCar Technology Group has a consensus price target of $4.75, indicating a potential upside of 141.12%. Given SunCar Technology Group’s higher possible upside, analysts clearly believe SunCar Technology Group is more favorable than Real Brokerage.
Summary
Real Brokerage beats SunCar Technology Group on 9 of the 14 factors compared between the two stocks.
About Real Brokerage
The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.
About SunCar Technology Group
SunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The company offers customized after-sale services to banking, insurance companies, and other customer types; and auto mobile insurance comprising statutory automobile liability insurance and commercial automobile insurance. In addition, it provides auto insurance SaaS products and other technical services. The company is based in Shanghai, China.
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