Analyzing The RMR Group (NASDAQ:RMR) & Broad Street Realty (OTCMKTS:BRST)

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

Risk & Volatility

The RMR Group has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Broad Street Realty has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500.

Valuation & Earnings

This table compares The RMR Group and Broad Street Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The RMR Group	$700.28 million	0.75	$17.60 million	$1.05	15.69
Broad Street Realty	$41.35 million	0.01	-$10.55 million	$0.18	0.08

The RMR Group has higher revenue and earnings than Broad Street Realty. Broad Street Realty 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.

Profitability

This table compares The RMR Group and Broad Street Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The RMR Group	2.48%	4.60%	2.80%
Broad Street Realty	81.10%	-561.27%	9.86%

Analyst Ratings

This is a breakdown of current recommendations for The RMR Group and Broad Street Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The RMR Group	2	0	1	1	2.25
Broad Street Realty	0	0	0	0	0.00

The RMR Group presently has a consensus target price of $20.50, indicating a potential upside of 24.47%. Given The RMR Group’s stronger consensus rating and higher probable upside, analysts clearly believe The RMR Group is more favorable than Broad Street Realty.

Insider & Institutional Ownership

42.3% of The RMR Group shares are held by institutional investors. 54.9% of The RMR Group shares are held by insiders. Comparatively, 26.6% of Broad Street Realty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

The RMR Group beats Broad Street Realty on 12 of the 15 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 Broad Street Realty

Broad Street Realty, Inc. owns, operates, develops, and redevelops grocery-anchored shopping centers, street retail-based properties, and mixed-use assets in the Mid-Atlantic, Southeast, and Colorado. The company provides commercial real estate brokerage services for owned and third-party offices, and industrial and retail operators and tenants, as well as leases its properties. It also offers oversight of day-to-day operations, coordination, tenant improvements, and building services; and real estate management and engineering services to property owners, as well as provides tenant representation, property and asset management, construction-related services, real estate sales and acquisition, and other financing services. Broad Street Realty, Inc. is based in Reston, Virginia.