Analyzing Marcus & Millichap (MMI) and Its Competitors

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

Profitability

This table compares Marcus & Millichap and its rivals’ 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	-14.21%	-44.05%	-1.57%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Marcus & Millichap and its rivals, as provided 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	185	664	294	11	2.11

Marcus & Millichap currently has a consensus target price of $29.00, suggesting a potential upside of 0.14%. As a group, “REAL ESTATE DEV” companies have a potential upside of 13.99%. Given Marcus & Millichap’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Marcus & Millichap has less favorable growth aspects than its rivals.

Dividends

Marcus & Millichap pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. 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 2.1% and pay out 32.8% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Marcus & Millichap and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Marcus & Millichap	$696.06 million	-$12.36 million	-181.00
Marcus & Millichap Competitors	$1.49 billion	-$82.46 million	0.73

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

Insider and 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. 39.2% of Marcus & Millichap shares are owned by company insiders. Comparatively, 38.3% of shares of all “REAL ESTATE DEV” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

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

Summary

Marcus & Millichap beats its rivals 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.