Tremor Video (NYSE: TLRA) and Marcus & Millichap (NYSE:MMI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Profitability

This table compares Tremor Video and Marcus & Millichap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tremor Video -7.11% -16.72% -8.96%
Marcus & Millichap 8.51% 22.56% 15.79%

Valuation and Earnings

This table compares Tremor Video and Marcus & Millichap’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tremor Video N/A N/A N/A ($0.27) -17.74
Marcus & Millichap $703.37 million 1.48 $101.83 million $1.54 17.78

Marcus & Millichap has higher revenue and earnings than Tremor Video. Tremor Video is trading at a lower price-to-earnings ratio than Marcus & Millichap, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tremor Video and Marcus & Millichap, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tremor Video 0 1 2 0 2.67
Marcus & Millichap 0 3 0 0 2.00

Tremor Video presently has a consensus price target of $4.13, suggesting a potential downside of 13.88%. Marcus & Millichap has a consensus price target of $27.00, suggesting a potential downside of 1.39%. Given Marcus & Millichap’s higher possible upside, analysts clearly believe Marcus & Millichap is more favorable than Tremor Video.

Institutional & Insider Ownership

39.7% of Tremor Video shares are owned by institutional investors. Comparatively, 41.9% of Marcus & Millichap shares are owned by institutional investors. 8.2% of Tremor Video shares are owned by company insiders. Comparatively, 58.3% of Marcus & Millichap shares are owned 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.

Risk and Volatility

Tremor Video has a beta of 1.21, meaning that its stock price is 21% 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.

Summary

Marcus & Millichap beats Tremor Video on 9 of the 11 factors compared between the two stocks.

Tremor Video Company Profile

Trulia, Inc. is a real estate search engine company. The Company’s marketplace, delivered through the web and mobile applications, gives consumers tools to research homes and neighborhoods and enables real estate professionals to market their listings and attract new clients. The Company also offers a suite of free and subscription products that provide real estate professionals with access to transaction-ready consumers and help them to grow and manage their online presence. For the year ended December 31, 2013, the Company had 38.8 million monthly unique visitors. As at December 31, 2013, the Company had more than 437,000 active real estate professionals in its Trulia marketplace and 157,000 active real estate professionals using its Market Leader software and services. Approximately 59,700 of these real estate professionals were paying subscribers (assuming 20% overlap between Trulia subscribers and Marker Leader’s premium subscribers).

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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