Compass (NYSE:COMP) versus Mitsubishi Estate (OTCMKTS:MITEY) Critical Contrast

Mitsubishi Estate (OTCMKTS:MITEY) and Compass (NYSE:COMP) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

67.0% of Compass shares are held by institutional investors. 2.9% of Compass shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Mitsubishi Estate and Compass”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi Estate	$11.60 billion	2.62	$1.47 billion	$1.51	16.61
Compass	$6.96 billion	N/A	-$58.50 million	$0.06	161.77

Mitsubishi Estate has higher revenue and earnings than Compass. Mitsubishi Estate is trading at a lower price-to-earnings ratio than Compass, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Mitsubishi Estate has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500. Comparatively, Compass has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.

Profitability

This table compares Mitsubishi Estate and Compass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi Estate	15.06%	6.15%	2.06%
Compass	0.63%	3.62%	1.37%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Mitsubishi Estate and Compass, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi Estate	0	1	0	0	2.00
Compass	0	5	11	1	2.76

Compass has a consensus price target of $13.50, indicating a potential upside of 39.09%. Given Compass’ stronger consensus rating and higher possible upside, analysts plainly believe Compass is more favorable than Mitsubishi Estate.

Summary

Compass beats Mitsubishi Estate on 8 of the 14 factors compared between the two stocks.

About Mitsubishi Estate

Mitsubishi Estate Co., Ltd. engages in the real estate activities in Japan and internationally. The company develops, leases, manages, and sells office buildings and commercial facilities; operates rental offices, coworking space, virtual offices, hourly meeting rooms, home delivery storage service, commercial nursing homes, and building garages; offers real estate management, as well as building management services, such as security, facility management, cleaning, and planting services; and operates hotels and airports. It also engages in the construction, sales, management, and leasing of developed condominiums and residential houses; design and contract construction of custom-built houses; renovation and sales of condominiums; real estate brokerage; dark fiber leasing and data center housing business; provision of real estate investment, such as asset management services to investment corporations and real estate funds; architectural design and engineering business; cooling and heating supply business; and parking management business. In addition, the company plans and operates logistics facilities; purchases, manufactures, processes, and sells construction materials; constructs prefabricated housing using cross-laminated timber and laminated wood; constructs, manufactures, and sells furniture and household items; offers financial consulting and investment advisory services; and develops and manages information systems and software. Further, it plans, develops, and operates GYYM, a platform service for fitness facilities; Ele-Cinema, a content distribution service that utilizes projectors in elevators; WELL ROOM, a healthcare portal site for foreign residents; and delivery and takeout systems. Additionally, the company produces and sells agricultural products; and offers walking tour entertainment content, human resources, land management, and landscaping services. Mitsubishi Estate Co., Ltd. was founded in 1890 and is headquartered in Tokyo, Japan.

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.