Contrasting reAlpha Tech (NASDAQ:AIRE) and SOHO China (OTCMKTS:SOHOF)

reAlpha Tech (NASDAQ:AIRE) and SOHO China (OTCMKTS:SOHOF) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

1.0% of reAlpha Tech shares are held by institutional investors. 73.9% of reAlpha Tech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

reAlpha Tech has a beta of -3.53, indicating that its share price is 453% less volatile than the S&P 500. Comparatively, SOHO China has a beta of -0.36, indicating that its share price is 136% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for reAlpha Tech and SOHO China, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
reAlpha Tech	0	0	1	0	3.00
SOHO China	0	0	0	0	0.00

reAlpha Tech currently has a consensus price target of $3.00, indicating a potential upside of 18.11%. Given reAlpha Tech’s stronger consensus rating and higher probable upside, analysts plainly believe reAlpha Tech is more favorable than SOHO China.

Profitability

This table compares reAlpha Tech and SOHO China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
reAlpha Tech	-2,035.17%	-45.22%	-36.74%
SOHO China	N/A	N/A	N/A

Valuation & Earnings

This table compares reAlpha Tech and SOHO China”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
reAlpha Tech	$321,095.00	362.81	N/A	N/A	N/A
SOHO China	N/A	N/A	N/A	N/A	N/A

Summary

reAlpha Tech beats SOHO China on 6 of the 10 factors compared between the two stocks.

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.

About SOHO China

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in the People's Republic of China. It also operates serviced hotels. The company was founded in 1995 and is headquartered in Beijing, China.