Analyzing CBRE Group (NYSE:CBRE) and reAlpha Tech (NASDAQ:AIRE)

reAlpha Tech (NASDAQ:AIRE) and CBRE Group (NYSE:CBRE) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

This table compares reAlpha Tech and CBRE Group’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%
CBRE Group	2.98%	25.12%	7.46%

Earnings & Valuation

This table compares reAlpha Tech and CBRE Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
reAlpha Tech	$4.52 million	1.31	-$17.59 million	($3.32)	-0.30
CBRE Group	$40.55 billion	0.95	$1.16 billion	$4.36	30.48

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

Institutional & Insider Ownership

1.0% of reAlpha Tech shares are held by institutional investors. Comparatively, 98.4% of CBRE Group shares are held by institutional investors. 21.5% of reAlpha Tech shares are held by company insiders. Comparatively, 0.5% of CBRE Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

reAlpha Tech has a beta of -2.56, indicating that its share price is 356% less volatile than the S&P 500. Comparatively, CBRE Group has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for reAlpha Tech and CBRE Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
reAlpha Tech	1	0	1	0	2.00
CBRE Group	0	1	6	0	2.86

reAlpha Tech currently has a consensus target price of $50.00, indicating a potential upside of 4,977.17%. CBRE Group has a consensus target price of $178.40, indicating a potential upside of 34.23%. Given reAlpha Tech’s higher possible upside, analysts plainly believe reAlpha Tech is more favorable than CBRE Group.

Summary

CBRE Group beats reAlpha Tech on 11 of the 14 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 CBRE Group

CBRE Group, Inc. operates as a commercial real estate services and investment company in the United States, the United Kingdom, and internationally. The Advisory Services segment offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing of offices, and industrial and retail space; clients fully integrated property sales services under the CBRE Capital Markets brand; clients commercial mortgage and structured financing services; originates and sells commercial mortgage loans; property management services, such as marketing, building engineering, accounting, and financial services on a contractual basis for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment provides facilities management, including day-to-day management of client-occupied space, headquarters, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, and distribution facilities and retail space; and project management services comprising building consulting, program, and project and cost management services under the Turner & Townsend brand name. The Real Estate Investments segment offers investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services, such as real estate development and investment activities under the Trammell Crow Company and Telford Homes brands to users and investors in commercial real estate, and for their own account. CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.