FirstService (NASDAQ:FSV) vs. Purplebricks Gp (OTCMKTS:PRPPF) Critical Review

Purplebricks Gp (OTCMKTS:PRPPF) and FirstService (NASDAQ:FSV) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Purplebricks Gp and FirstService”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Purplebricks Gp	N/A	N/A	N/A	N/A	N/A
FirstService	$5.50 billion	1.29	$145.05 million	$3.16	48.94

FirstService has higher revenue and earnings than Purplebricks Gp.

Institutional and Insider Ownership

69.4% of FirstService shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Purplebricks Gp and FirstService’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Purplebricks Gp	N/A	N/A	N/A
FirstService	2.64%	18.69%	5.60%

Analyst Ratings

This is a summary of recent ratings and target prices for Purplebricks Gp and FirstService, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purplebricks Gp	0	0	0	0	0.00
FirstService	0	2	6	0	2.75

FirstService has a consensus price target of $211.67, indicating a potential upside of 36.87%. Given FirstService’s stronger consensus rating and higher possible upside, analysts plainly believe FirstService is more favorable than Purplebricks Gp.

Summary

FirstService beats Purplebricks Gp on 8 of the 8 factors compared between the two stocks.

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.

About FirstService

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.