Douglas Elliman (NYSE:DOUG – Get Free Report) and Marcus & Millichap (NYSE:MMI – Get Free Report) are both small-cap real estate companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Valuation and Earnings
This table compares Douglas Elliman and Marcus & Millichap”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Douglas Elliman | $1.01 billion | 0.14 | $15.22 million | $0.17 | 9.26 |
| Marcus & Millichap | $755.16 million | 1.45 | -$1.91 million | $0.37 | 78.03 |
Douglas Elliman has higher revenue and earnings than Marcus & Millichap. Douglas Elliman 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 Douglas Elliman and Marcus & Millichap’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Douglas Elliman | 2.47% | -19.16% | -6.72% |
| Marcus & Millichap | 1.77% | 2.97% | 2.21% |
Volatility & Risk
Douglas Elliman has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Douglas Elliman and Marcus & Millichap, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Douglas Elliman | 1 | 2 | 0 | 0 | 1.67 |
| Marcus & Millichap | 1 | 1 | 0 | 0 | 1.50 |
Marcus & Millichap has a consensus price target of $28.00, indicating a potential downside of 3.01%. Given Marcus & Millichap’s higher probable upside, analysts plainly believe Marcus & Millichap is more favorable than Douglas Elliman.
Insider & Institutional Ownership
59.6% of Douglas Elliman shares are held by institutional investors. Comparatively, 62.8% of Marcus & Millichap shares are held by institutional investors. 9.6% of Douglas Elliman shares are held by company insiders. Comparatively, 39.9% of Marcus & Millichap shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Douglas Elliman pays an annual dividend of $0.05 per share and has a dividend yield of 3.2%. Marcus & Millichap pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. Douglas Elliman pays out 29.4% of its earnings in the form of a dividend. Marcus & Millichap pays out 135.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Douglas Elliman is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Marcus & Millichap beats Douglas Elliman on 8 of the 15 factors compared between the two stocks.
About Douglas Elliman
Douglas Elliman Inc. owns Douglas Elliman Realty, LLC, operating as a residential brokerage company in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.
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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