Financial Analysis: reAlpha Tech (NASDAQ:AIRE) versus Real Brokerage (NASDAQ:REAX)

reAlpha Tech (NASDAQ:AIRE) and Real Brokerage (NASDAQ:REAX) are both small-cap real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Institutional and Insider Ownership

1.0% of reAlpha Tech shares are owned by institutional investors. Comparatively, 53.3% of Real Brokerage shares are owned by institutional investors. 39.6% of reAlpha Tech shares are owned by company insiders. Comparatively, 38.2% of Real Brokerage shares are owned by company insiders. 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 reAlpha Tech and Real Brokerage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
reAlpha Tech	-419.95%	-198.91%	-97.12%
Real Brokerage	-0.72%	-25.32%	-9.83%

Analyst Recommendations

This is a summary of current recommendations for reAlpha Tech and Real Brokerage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
reAlpha Tech	1	0	1	0	2.00
Real Brokerage	1	1	6	2	2.90

reAlpha Tech currently has a consensus price target of $50.00, indicating a potential upside of 3,631.34%. Real Brokerage has a consensus price target of $50.00, indicating a potential upside of 204.32%. Given reAlpha Tech’s higher possible upside, analysts plainly believe reAlpha Tech is more favorable than Real Brokerage.

Volatility & Risk

reAlpha Tech has a beta of -2.64, suggesting that its stock price is 364% less volatile than the S&P 500. Comparatively, Real Brokerage has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Earnings and Valuation

This table compares reAlpha Tech and Real Brokerage”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
reAlpha Tech	$4.52 million	1.78	-$17.59 million	($3.32)	-0.40
Real Brokerage	$1.97 billion	0.18	-$8.10 million	($0.70)	-23.47

Real Brokerage has higher revenue and earnings than reAlpha Tech. Real Brokerage is trading at a lower price-to-earnings ratio than reAlpha Tech, indicating that it is currently the more affordable of the two stocks.

Summary

Real Brokerage beats reAlpha Tech on 11 of the 15 factors compared between the two stocks.

About reAlpha Tech

reAlpha Tech Corp., a real estate technology company, commercializes artificial intelligence (AI)-powered technologies. The company operates in two segments, Platform Services and Rental Business. The company offers and develops AI-based products and services to customers in the real-estate industry. These include reAlpha BRAIN, which utilizes a natural language processing program to scan through property data and choose the ones with a higher than expected industry standard return on investment; reAlpha HUMINT, which allows analysts to input qualitative features about a property and factor it into property evaluation; GENA to generate home descriptions; AIRE, a web-based AI application that provides data and insights about the real estate market; and reAlpha App, which allows syndicate members to acquire equity interests in the syndication LLC. It also leases short-term rental properties; and provides technical support services. The company was formerly known as eAlpha Asset Management, Inc. and changed its name to reAlpha Tech Corp. in March 2023. reAlpha Tech Corp. was founded in 2020 and is headquartered in Dublin, Ohio.

About Real Brokerage

The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.