Compass (NYSE:COMP – Get Free Report) and reAlpha Tech (NASDAQ:AIRE – Get Free Report) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares Compass and reAlpha Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Compass | 0.63% | 3.62% | 1.37% |
| reAlpha Tech | -419.95% | -198.91% | -97.12% |
Valuation and Earnings
This table compares Compass and reAlpha Tech”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Compass | $6.96 billion | 1.11 | -$58.50 million | $0.06 | 170.65 |
| reAlpha Tech | $4.52 million | 0.52 | -$17.59 million | ($3.32) | -0.12 |
reAlpha Tech has lower revenue, but higher earnings than Compass. reAlpha Tech is trading at a lower price-to-earnings ratio than Compass, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
67.0% of Compass shares are held by institutional investors. Comparatively, 1.0% of reAlpha Tech shares are held by institutional investors. 2.9% of Compass shares are held by insiders. Comparatively, 21.5% of reAlpha Tech shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Compass and reAlpha Tech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Compass | 0 | 5 | 11 | 1 | 2.76 |
| reAlpha Tech | 1 | 0 | 1 | 0 | 2.00 |
Compass presently has a consensus target price of $13.07, indicating a potential upside of 27.66%. reAlpha Tech has a consensus target price of $50.00, indicating a potential upside of 12,740.27%. Given reAlpha Tech’s higher probable upside, analysts plainly believe reAlpha Tech is more favorable than Compass.
Volatility and Risk
Compass has a beta of 2.39, meaning that its share price is 139% more volatile than the S&P 500. Comparatively, reAlpha Tech has a beta of -2.29, meaning that its share price is 329% less volatile than the S&P 500.
Summary
Compass beats reAlpha Tech on 12 of the 15 factors compared between the two stocks.
About Compass
Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports. It also provides full-service title and escrow/settlement services to real estate agents' clients, real estate companies, and financial institutions relating to the closing of home purchases as well as the refinancing of home loans; and Compass Concierge, a program in which home sellers access to capital to front the cost of home improvement services. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was incorporated in 2012 and is headquartered in New York, New York.
About reAlpha Tech
reAlpha Tech Corp., a real estate technology company, commercializes artificial intelligence (AI)-powered technologies. The company operates in two segments, Platform Services and Rental Business. The company offers and develops AI-based products and services to customers in the real-estate industry. These include reAlpha BRAIN, which utilizes a natural language processing program to scan through property data and choose the ones with a higher than expected industry standard return on investment; reAlpha HUMINT, which allows analysts to input qualitative features about a property and factor it into property evaluation; GENA to generate home descriptions; AIRE, a web-based AI application that provides data and insights about the real estate market; and reAlpha App, which allows syndicate members to acquire equity interests in the syndication LLC. It also leases short-term rental properties; and provides technical support services. The company was formerly known as eAlpha Asset Management, Inc. and changed its name to reAlpha Tech Corp. in March 2023. reAlpha Tech Corp. was founded in 2020 and is headquartered in Dublin, Ohio.
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