RMR Group (NASDAQ: RMR) and Redfin (NASDAQ:RDFN) are both financials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Profitability

This table compares RMR Group and Redfin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RMR Group 15.56% 11.27% 8.33%
Redfin N/A N/A N/A

Institutional & Insider Ownership

34.4% of RMR Group shares are held by institutional investors. Comparatively, 37.9% of Redfin shares are held by institutional investors. 55.3% of RMR Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

RMR Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Redfin does not pay a dividend. RMR Group pays out 38.2% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares RMR Group and Redfin’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RMR Group $271.73 million 3.33 $42.29 million $2.62 22.79
Redfin $267.19 million 8.33 -$22.52 million ($3.59) -7.62

RMR Group has higher revenue and earnings than Redfin. Redfin is trading at a lower price-to-earnings ratio than RMR Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for RMR Group and Redfin, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RMR Group 0 3 2 0 2.40
Redfin 1 5 4 0 2.30

RMR Group presently has a consensus price target of $58.00, indicating a potential downside of 2.85%. Redfin has a consensus price target of $25.33, indicating a potential downside of 7.34%. Given RMR Group’s stronger consensus rating and higher possible upside, research analysts plainly believe RMR Group is more favorable than Redfin.

Summary

RMR Group beats Redfin on 11 of the 15 factors compared between the two stocks.

RMR Group Company Profile

The RMR Group Inc. is a holding company. The Company’s business is primarily conducted by its subsidiary, The RMR Group LLC (RMR LLC). The Company’s segments include RMR LLC and All Other Operations. RMR LLC manages a portfolio of publicly owned real estate and real estate related businesses. RMR LLC manages Government Properties Income Trust, a real estate investment trust (REIT) that primarily owns properties that are leased to government tenants; Hospitality Properties Trust, an REIT that primarily owns hotels and travel centers; Select Income REIT, an REIT that primarily owns properties leased to single tenants across the United States and leased lands in Hawaii, and Senior Housing Properties Trust, an REIT that primarily owns senior living communities and medical office buildings. As of June 30, 2016, RMR LLC managed over 1,300 properties, which were located in 48 states, Washington, District of Columbia, Puerto Rico and Canada.

Redfin Company Profile

Redfin Corporation is engaged in providing residential real estate brokerage services. The customer can search for homes by neighborhood, city or MLS number, or can refine results using detailed parameters, such as price and number of beds or baths. The Company serves home buyers and sellers. The Company offers online tools to consumers, including Redfin Estimate, which is an automated home-valuation tool. The customer can search homes for sale in Austin, Atlanta, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Fort Lauderdale, Houston, Lake Tahoe, Las Vegas, Los Angeles, Miami, Philadelphia, Phoenix, Portland, OR, Raleigh, San Antonio, San Diego, San Francisco, Sacramento, San Jose, Seattle and Washington. The Company serves over 80 metro areas across the United States.

Receive News & Ratings for RMR Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RMR Group and related companies with MarketBeat.com's FREE daily email newsletter.