Analyzing Offerpad Solutions (NYSE:OPAD) and Vonovia (OTCMKTS:VONOY)

Offerpad Solutions (NYSE:OPAD) and Vonovia (OTCMKTS:VONOY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Institutional and Insider Ownership

39.4% of Offerpad Solutions shares are owned by institutional investors. 40.6% of Offerpad Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Offerpad Solutions and Vonovia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Offerpad Solutions	$918.82 million	0.07	-$62.16 million	($1.94)	-0.95
Vonovia	$5.51 billion	4.30	-$969.56 million	$2.70	5.24

Offerpad Solutions has higher earnings, but lower revenue than Vonovia. Offerpad Solutions is trading at a lower price-to-earnings ratio than Vonovia, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Offerpad Solutions and Vonovia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Offerpad Solutions	-8.74%	-147.32%	-19.97%
Vonovia	39.42%	12.34%	3.98%

Risk and Volatility

Offerpad Solutions has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500. Comparatively, Vonovia has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Offerpad Solutions and Vonovia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Offerpad Solutions	1	5	0	0	1.83
Vonovia	0	0	1	0	3.00

Offerpad Solutions presently has a consensus price target of $2.22, suggesting a potential upside of 20.14%. Given Offerpad Solutions’ higher possible upside, analysts plainly believe Offerpad Solutions is more favorable than Vonovia.

Summary

Vonovia beats Offerpad Solutions on 9 of the 14 factors compared between the two stocks.

About Offerpad Solutions

Offerpad Solutions Inc., together with its subsidiaries, provides technology-enabled solutions for residential real estate market in the United States. It operates iBuying, a real estate solutions platform for on-demand customer that provides home buyers the opportunity to browse and tour homes online. It buys and sells homes through cash offer and listing services. In addition, the company offers renovation services; and ancillary products and services, including mortgage, title insurance, and escrow services, as well as Offerpad Bundle Rewards program that allows customers to receive various discounts when selling and buying a home. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.

About Vonovia

Vonovia SE operates as an integrated residential real estate company in Europe. It operates through four segments: Rental, Value-Add, Recurring Sales, and Development. The company offers property management services; property-related services; and value-added services, including maintenance and modernization of residential properties, craftsmen and residential environment organization, condominium administration, cable TV, metering, energy supply, and insurances services. It also engages in the sale of individual condominiums and single-family houses; and project development activities. The company was formerly known as Deutsche Annington Immobilien SE and changed its name to Vonovia SE in August 2015. Vonovia SE was founded in 1998 and is headquartered in Bochum, Germany.