Head-To-Head Contrast: The RMR Group (NASDAQ:RMR) vs. Douglas Elliman (NYSE:DOUG)

The RMR Group (NASDAQ:RMR) and Douglas Elliman (NYSE:DOUG) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Institutional & Insider Ownership

42.3% of The RMR Group shares are owned by institutional investors. Comparatively, 59.6% of Douglas Elliman shares are owned by institutional investors. 54.9% of The RMR Group shares are owned by insiders. Comparatively, 6.8% of Douglas Elliman shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares The RMR Group and Douglas Elliman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The RMR Group	2.56%	5.01%	3.10%
Douglas Elliman	-5.98%	-7.11%	-2.27%

Earnings & Valuation

This table compares The RMR Group and Douglas Elliman”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The RMR Group	$897.20 million	0.59	$23.13 million	$1.17	14.16
Douglas Elliman	$995.63 million	0.27	-$76.32 million	($0.74)	-4.04

The RMR Group has higher earnings, but lower revenue than Douglas Elliman. Douglas Elliman is trading at a lower price-to-earnings ratio than The RMR Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for The RMR Group and Douglas Elliman, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The RMR Group	0	0	0	1	4.00
Douglas Elliman	0	0	0	0	0.00

The RMR Group currently has a consensus price target of $24.00, indicating a potential upside of 44.84%. Given The RMR Group’s stronger consensus rating and higher possible upside, research analysts plainly believe The RMR Group is more favorable than Douglas Elliman.

Volatility & Risk

The RMR Group has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Douglas Elliman has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Summary

The RMR Group beats Douglas Elliman on 11 of the 14 factors compared between the two stocks.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

About Douglas Elliman

Douglas Elliman Inc. owns Douglas Elliman Realty, LLC, operating as a residential brokerage company in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.