Comparing The RMR Group (NASDAQ:RMR) & Purplebricks Gp (OTCMKTS:PRPPF)

The RMR Group (NASDAQ:RMR) and Purplebricks Gp (OTCMKTS:PRPPF) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares The RMR Group and Purplebricks Gp’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%
Purplebricks Gp	N/A	N/A	N/A

Institutional & Insider Ownership

42.3% of The RMR Group shares are held by institutional investors. 54.7% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares The RMR Group and Purplebricks Gp”s 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	0.69	$17.60 million	$1.05	14.42
Purplebricks Gp	N/A	N/A	N/A	N/A	N/A

The RMR Group has higher revenue and earnings than Purplebricks Gp.

Analyst Recommendations

This is a breakdown of current ratings for The RMR Group and Purplebricks Gp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The RMR Group	1	1	1	1	2.50
Purplebricks Gp	0	0	0	0	0.00

The RMR Group currently has a consensus target price of $20.50, indicating a potential upside of 35.40%. Given The RMR Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe The RMR Group is more favorable than Purplebricks Gp.

Summary

The RMR Group beats Purplebricks Gp on 10 of the 10 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 Purplebricks Gp

Bricks Newco Limited engages in the real estate agency business in the United Kingdom. The company provides services and technology to sell or let residential properties in the United Kingdom on behalf of the owner or landlord. It also engages in the letting of residential properties; and the provision of mortgage advisory services. The company offers its services under the Purplebricks brand name. Bricks Newco Limited was incorporated in 2012 and is based in Solihull, the United Kingdom.