Analyzing Marcus & Millichap (MMI) and Its Competitors

Marcus & Millichap (NYSE:MMI) is one of 31 publicly-traded companies in the “REAL ESTATE DEV” industry, but how does it compare to its competitors? We will compare Marcus & Millichap to similar companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares Marcus & Millichap and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Marcus & Millichap	$696.06 million	-$12.36 million	-176.44
Marcus & Millichap Competitors	$1.49 billion	-$82.46 million	1.03

Marcus & Millichap’s competitors have higher revenue, but lower earnings than Marcus & Millichap. Marcus & Millichap is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations for Marcus & Millichap and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus & Millichap	2	2	0	0	1.50
Marcus & Millichap Competitors	187	666	295	11	2.11

Marcus & Millichap currently has a consensus price target of $29.00, indicating a potential upside of 2.73%. As a group, “REAL ESTATE DEV” companies have a potential upside of 18.46%. Given Marcus & Millichap’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Marcus & Millichap has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

62.8% of Marcus & Millichap shares are held by institutional investors. Comparatively, 52.7% of shares of all “REAL ESTATE DEV” companies are held by institutional investors. 39.9% of Marcus & Millichap shares are held by insiders. Comparatively, 42.4% of shares of all “REAL ESTATE DEV” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Marcus & Millichap and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marcus & Millichap	-0.89%	-0.58%	-0.43%
Marcus & Millichap Competitors	-14.21%	-44.05%	-1.57%

Volatility & Risk

Marcus & Millichap has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Marcus & Millichap’s competitors have a beta of -6.34, suggesting that their average stock price is 734% less volatile than the S&P 500.

Dividends

Marcus & Millichap pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. Marcus & Millichap pays out -312.5% of its earnings in the form of a dividend. As a group, “REAL ESTATE DEV” companies pay a dividend yield of 2.1% and pay out 32.8% of their earnings in the form of a dividend.

Summary

Marcus & Millichap competitors beat Marcus & Millichap on 8 of the 15 factors compared.

Marcus & Millichap Company Profile

Marcus & Millichap, Inc. engages in the provision of investment real estate brokerage services. It specializes in commercial real estate investment sales, property financing, research, and advisory services. The company was founded by George M. Marcus and William A. Millichap in 1971 and is headquartered in Calabasas, CA.