Critical Contrast: Marcus & Millichap (MMI) versus Its Rivals

Marcus & Millichap (NYSE:MMI) is one of 31 public companies in the “REAL ESTATE DEV” industry, but how does it weigh in compared to its competitors? We will compare Marcus & Millichap to related companies based on the strength of its institutional ownership, earnings, analyst recommendations, risk, valuation, dividends and profitability.

Insider & Institutional Ownership

62.8% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 52.7% of shares of all “REAL ESTATE DEV” companies are owned by institutional investors. 39.2% of Marcus & Millichap shares are owned by company insiders. Comparatively, 38.3% of shares of all “REAL ESTATE DEV” companies are owned by company 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.

Risk & Volatility

Marcus & Millichap has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Marcus & Millichap’s competitors have a beta of -6.34, meaning that their average stock price is 734% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Marcus & Millichap and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus & Millichap	2	2	0	0	1.50
Marcus & Millichap Competitors	185	663	293	11	2.11

Marcus & Millichap presently has a consensus price target of $29.00, indicating a potential downside of 0.37%. As a group, “REAL ESTATE DEV” companies have a potential upside of 13.44%. Given Marcus & Millichap’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Marcus & Millichap has less favorable growth aspects than its competitors.

Dividends

Marcus & Millichap pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. Marcus & Millichap pays out -312.5% of its earnings in the form of a dividend. As a group, “REAL ESTATE DEV” companies pay a dividend yield of 2.1% and pay out 32.8% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Marcus & Millichap and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Marcus & Millichap	$696.06 million	-$12.36 million	-181.92
Marcus & Millichap Competitors	$1.49 billion	-$82.46 million	0.82

Marcus & Millichap’s competitors have higher revenue, but lower earnings than Marcus & Millichap. Marcus & Millichap is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Marcus & Millichap and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus & Millichap	-0.89%	-0.58%	-0.43%
Marcus & Millichap Competitors	-14.21%	-44.05%	-1.57%

Summary

Marcus & Millichap beats its competitors on 8 of the 15 factors compared.

Marcus & Millichap Company Profile

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.