Contrasting MJ (OTCMKTS:MJNE) & American Realty Investors (NYSE:ARL)

American Realty Investors (NYSE:ARL) and MJ (OTCMKTS:MJNE) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Volatility and Risk

American Realty Investors has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, MJ has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500.

Valuation and Earnings

This table compares American Realty Investors and MJ”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Realty Investors	$47.32 million	5.50	-$14.70 million	$0.36	44.74
MJ	N/A	N/A	N/A	N/A	N/A

MJ has lower revenue, but higher earnings than American Realty Investors.

Profitability

This table compares American Realty Investors and MJ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Realty Investors	11.74%	0.33%	0.25%
MJ	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for American Realty Investors and MJ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Realty Investors	0	1	0	0	2.00
MJ	0	0	0	0	0.00

Given MJ’s higher possible upside, analysts clearly believe MJ is more favorable than American Realty Investors.

Summary

American Realty Investors beats MJ on 6 of the 7 factors compared between the two stocks.

About American Realty Investors

American Realty Investors, Inc., together with its subsidiaries, acquires, develops, owns, and manages multifamily and commercial real estate properties in the Southern United States. It operates through two segments, Residential and Commercial. The company leases apartment units to residents; and office, industrial, and retail space to various for-profit businesses, as well as local, state, and federal agencies. It also offers tenant services, including parking and storage space rental; and sells land and properties. The company was incorporated in 1999 and is based in Dallas, Texas. American Realty Investors, Inc. is a subsidiary of Realty Advisors, Inc.

About MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.