Reviewing Marcus & Millichap (NYSE:MMI) and Intergroup (NASDAQ:INTG)

Intergroup (NASDAQ:INTGGet Free Report) and Marcus & Millichap (NYSE:MMIGet Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares Intergroup and Marcus & Millichap”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intergroup $64.38 million 0.93 -$5.35 million ($0.57) -48.70
Marcus & Millichap $696.06 million 1.45 -$12.36 million ($0.16) -161.95

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

Profitability

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

Net Margins Return on Equity Return on Assets
Intergroup -1.82% N/A -1.21%
Marcus & Millichap -0.89% -0.58% -0.43%

Analyst Recommendations

This is a summary of current recommendations for Intergroup and Marcus & Millichap, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intergroup 1 0 0 0 1.00
Marcus & Millichap 2 2 0 0 1.50

Marcus & Millichap has a consensus price target of $28.00, indicating a potential upside of 8.06%. Given Marcus & Millichap’s stronger consensus rating and higher possible upside, analysts clearly believe Marcus & Millichap is more favorable than Intergroup.

Risk and Volatility

Intergroup has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Institutional & Insider Ownership

3.4% of Intergroup shares are held by institutional investors. Comparatively, 62.8% of Marcus & Millichap shares are held by institutional investors. 74.1% of Intergroup shares are held by company insiders. Comparatively, 39.2% of Marcus & Millichap shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Marcus & Millichap beats Intergroup on 9 of the 13 factors compared between the two stocks.

About Intergroup

(Get Free Report)

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.

About Marcus & Millichap

(Get Free Report)

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.

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