Real Brokerage (NASDAQ:REAX – Get Free Report) and reAlpha Tech (NASDAQ:AIRE – Get Free Report) are both small-cap real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Profitability
This table compares Real Brokerage and reAlpha Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Real Brokerage | -0.72% | -25.32% | -9.83% |
| reAlpha Tech | -419.95% | -198.91% | -97.12% |
Valuation and Earnings
This table compares Real Brokerage and reAlpha Tech”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Real Brokerage | $1.97 billion | 0.18 | -$8.10 million | ($0.70) | -23.61 |
| reAlpha Tech | $4.52 million | 1.81 | -$17.59 million | ($3.32) | -0.41 |
Real Brokerage has higher revenue and earnings than reAlpha Tech. Real Brokerage is trading at a lower price-to-earnings ratio than reAlpha Tech, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Real Brokerage and reAlpha Tech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Real Brokerage | 1 | 1 | 6 | 2 | 2.90 |
| reAlpha Tech | 1 | 0 | 1 | 0 | 2.00 |
Real Brokerage currently has a consensus price target of $50.00, suggesting a potential upside of 202.48%. reAlpha Tech has a consensus price target of $50.00, suggesting a potential upside of 3,576.47%. Given reAlpha Tech’s higher probable upside, analysts plainly believe reAlpha Tech is more favorable than Real Brokerage.
Institutional and Insider Ownership
53.3% of Real Brokerage shares are owned by institutional investors. Comparatively, 1.0% of reAlpha Tech shares are owned by institutional investors. 38.2% of Real Brokerage shares are owned by insiders. Comparatively, 39.6% of reAlpha Tech shares are owned by 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.
Risk & Volatility
Real Brokerage has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, reAlpha Tech has a beta of -2.64, indicating that its share price is 364% less volatile than the S&P 500.
Summary
Real Brokerage beats reAlpha Tech on 11 of the 15 factors compared between the two stocks.
About Real Brokerage
The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.
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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