Contrasting eXp World (NASDAQ:EXPI) and Marcus & Millichap (MMI)

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

Earnings & Valuation

This table compares eXp World and Marcus & Millichap’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
eXp World $500.15 million 1.23 -$22.43 million ($0.39) -25.90
Marcus & Millichap $814.82 million 2.06 $87.26 million $2.22 19.39

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

Volatility and Risk

eXp World has a beta of 5.15, meaning that its stock price is 415% more volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Institutional and Insider Ownership

5.2% of eXp World shares are held by institutional investors. Comparatively, 58.3% of Marcus & Millichap shares are held by institutional investors. 47.2% of eXp World shares are held by company insiders. Comparatively, 41.7% of Marcus & Millichap shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
eXp World -4.48% -120.59% -52.49%
Marcus & Millichap 10.71% 23.51% 17.59%

Analyst Ratings

This is a summary of recent ratings for eXp World and Marcus & Millichap, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eXp World 0 0 3 0 3.00
Marcus & Millichap 0 1 1 0 2.50

eXp World currently has a consensus target price of $20.00, suggesting a potential upside of 98.02%. Marcus & Millichap has a consensus target price of $46.00, suggesting a potential upside of 6.88%. Given eXp World’s stronger consensus rating and higher possible upside, equities research analysts clearly believe eXp World is more favorable than Marcus & Millichap.

Summary

Marcus & Millichap beats eXp World on 9 of the 14 factors compared between the two stocks.

eXp World Company Profile

eXp World Holdings, Inc. provides cloud-based real estate brokerage services for residential real estate market in the United States and Canada. The company facilitates buyers to search real-time property listings and sellers to list their properties through its Website, exprealty.com; and provides buyers and sellers access to a network of professional, consumer-centric agents, and brokers. It also offers access to collaborative tools and training services for real estate brokers and agents. In addition, the company provides marketing, training, and other support services to its brokers and agents through a proprietary technology enabled services, and technology and support services contracted to third parties. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was founded in 2008 and is based in Bellingham, Washington.

Marcus & Millichap Company Profile

Marcus & Millichap, Inc., a brokerage company, provides real estate investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada. The company offers commercial real estate investment sales, financing, research, and advisory services for multifamily, retail, office, and industrial properties, as well as hospitality, self-storage, seniors housing, land, and manufactured housing properties. It also operates as a broker of debt financing for commercial properties. In addition, the company provides various ancillary services, including research, and advisory and consulting services to developers, lenders, owners, real estate investment trusts, high net worth individuals, pension fund advisors, and other institutions. Marcus & Millichap, Inc. was founded in 1971 and is headquartered in Calabasas, California.

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