Head-To-Head Analysis: SouFun Holdings Limited (SFUN) versus Marcus & Millichap (MMI)
SouFun Holdings Limited (NYSE: SFUN) and Marcus & Millichap (NYSE:MMI) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
This table compares SouFun Holdings Limited and Marcus & Millichap’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SouFun Holdings Limited||-4.57%||-8.80%||-2.74%|
|Marcus & Millichap||8.51%||22.56%||15.79%|
Valuation and Earnings
This table compares SouFun Holdings Limited and Marcus & Millichap’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SouFun Holdings Limited||$644.69 million||2.83||$9.32 million||($0.06)||-70.00|
|Marcus & Millichap||$703.37 million||1.47||$101.83 million||$1.54||17.61|
Marcus & Millichap has higher revenue and earnings than SouFun Holdings Limited. SouFun Holdings Limited is trading at a lower price-to-earnings ratio than Marcus & Millichap, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
SouFun Holdings Limited has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.
This is a breakdown of recent ratings for SouFun Holdings Limited and Marcus & Millichap, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SouFun Holdings Limited||2||3||2||0||2.00|
|Marcus & Millichap||0||3||0||0||2.00|
SouFun Holdings Limited presently has a consensus price target of $3.63, suggesting a potential downside of 13.67%. Marcus & Millichap has a consensus price target of $27.00, suggesting a potential downside of 0.44%. Given Marcus & Millichap’s higher probable upside, analysts clearly believe Marcus & Millichap is more favorable than SouFun Holdings Limited.
Institutional & Insider Ownership
46.9% of SouFun Holdings Limited shares are owned by institutional investors. Comparatively, 41.9% of Marcus & Millichap shares are owned by institutional investors. 58.3% of Marcus & Millichap shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Marcus & Millichap beats SouFun Holdings Limited on 9 of the 12 factors compared between the two stocks.
SouFun Holdings Limited Company Profile
Fang Holdings Limited, formerly SouFun Holdings Limited, operates as a real estate Internet portal in China. The Company’s Websites and mobile applications support active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors in China. The Company, through its Internet platform, is engaged in the development of transaction and financing platforms by offering direct sales services for new homes, online real estate brokerage services and financial services. The Company’s service offerings include marketing services, E-commerce services, listing services, Financial services and other value-added services. The Company provides secured loans in the form of entrusted loans and mortgage loans and unsecured loans primarily to home buyers, real estate developers and other borrowers that meet its credit assessment requirements.
Marcus & Millichap Company Profile
Marcus & Millichap, Inc. is a brokerage company specializing in commercial real estate investment sales, financing, research and advisory services. The Company offers three primary services to its clients: commercial real estate investment brokerage, financing, and ancillary services, including other research, advisory and consulting services. It provides its financing services through Marcus & Millichap Capital Corporation, which is a broker of debt financing for commercial properties. Its research, advisory and consulting services are designed to assist clients in forming their investment strategy and making transaction decisions. Its advisory services include opinions of value, operating and financial performance benchmarking analysis, and specific asset buy-sell strategies. As of December 31, 2016, the Company had over 1,700 investment sales and financing professionals in 82 offices in the United States and Canada that provide investment brokerage and financing services.
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