Critical Comparison: Marcus & Millichap (MMI) and The Competition

Marcus & Millichap (NYSE:MMI) is one of 31 publicly-traded companies in the “REAL ESTATE DEV” industry, but how does it weigh in compared to its competitors? We will compare Marcus & Millichap to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Valuation & Earnings

This table compares Marcus & Millichap and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Marcus & Millichap	$696.06 million	-$12.36 million	-174.48
Marcus & Millichap Competitors	$1.49 billion	-$82.46 million	2.46

Marcus & Millichap’s competitors have higher revenue, but lower earnings than Marcus & Millichap. Marcus & Millichap is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

62.8% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 52.7% of shares of all “REAL ESTATE DEV” companies are owned by institutional investors. 39.9% of Marcus & Millichap shares are owned by insiders. Comparatively, 42.4% of shares of all “REAL ESTATE DEV” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Marcus & Millichap and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus & Millichap	2	2	0	0	1.50
Marcus & Millichap Competitors	189	668	296	11	2.11

Marcus & Millichap presently has a consensus target price of $29.00, suggesting a potential upside of 3.88%. As a group, “REAL ESTATE DEV” companies have a potential upside of 17.12%. Given Marcus & Millichap’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Marcus & Millichap has less favorable growth aspects than its competitors.

Volatility and Risk

Marcus & Millichap has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Marcus & Millichap’s competitors have a beta of -6.34, meaning that their average share price is 734% less volatile than the S&P 500.

Profitability

This table compares Marcus & Millichap and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus & Millichap	-0.89%	-0.58%	-0.43%
Marcus & Millichap Competitors	-14.50%	-44.24%	-1.73%

Dividends

Marcus & Millichap pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. Marcus & Millichap pays out -312.5% of its earnings in the form of a dividend. As a group, “REAL ESTATE DEV” companies pay a dividend yield of 2.7% and pay out 42.5% of their earnings in the form of a dividend.

Summary

Marcus & Millichap competitors beat Marcus & Millichap on 8 of the 15 factors compared.

Marcus & Millichap Company Profile

Marcus & Millichap, Inc. engages in the provision of investment real estate brokerage services. It specializes in commercial real estate investment sales, property financing, research, and advisory services. The company was founded by George M. Marcus and William A. Millichap in 1971 and is headquartered in Calabasas, CA.