Real Brokerage (REAX) & Its Peers Critical Review

Real Brokerage (NASDAQ:REAX – Get Rating) is one of 22 public companies in the “Real estate agents & managers” industry, but how does it compare to its peers? We will compare Real Brokerage to similar companies based on the strength of its earnings, profitability, analyst recommendations, dividends, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Real Brokerage and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Brokerage	0	0	1	0	3.00
Real Brokerage Competitors	142	578	676	26	2.41

Real Brokerage presently has a consensus price target of $3.00, indicating a potential upside of 89.87%. As a group, “Real estate agents & managers” companies have a potential upside of 62.68%. Given Real Brokerage’s stronger consensus rating and higher possible upside, analysts clearly believe Real Brokerage is more favorable than its peers.

Profitability

This table compares Real Brokerage and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Real Brokerage	-6.99%	-36.40%	-25.80%
Real Brokerage Competitors	2.57%	6.73%	1.43%

Valuation and Earnings

This table compares Real Brokerage and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Real Brokerage	$121.68 million	-$11.68 million	-14.36
Real Brokerage Competitors	$5.23 billion	$200.16 million	-6.05

Real Brokerage’s peers have higher revenue and earnings than Real Brokerage. Real Brokerage is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

21.4% of Real Brokerage shares are owned by institutional investors. Comparatively, 64.5% of shares of all “Real estate agents & managers” companies are owned by institutional investors. 25.2% of shares of all “Real estate agents & managers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Real Brokerage peers beat Real Brokerage on 9 of the 12 factors compared.

Real Brokerage Company Profile (Get Rating)

The Real Brokerage Inc., together with its subsidiaries, operates as a technology-powered real estate brokerage company. It provides brokerage services for the real estate market through a network of agents. The company offers agents a mobile-focused tech platform to run its business, as well as business terms and wealth-building opportunities. It operates in 42 states in the United States, the District of Columbia, and Canada. The Real Brokerage Inc. is headquartered in Toronto, Canada.