Analyzing Real Brokerage (NASDAQ:REAX) and SunCar Technology Group (NASDAQ:SDA)

Real Brokerage (NASDAQ:REAX) and SunCar Technology Group (NASDAQ:SDA) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Real Brokerage and SunCar Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Brokerage	1	0	2	1	2.75
SunCar Technology Group	1	0	2	0	2.33

Real Brokerage presently has a consensus target price of $6.50, suggesting a potential upside of 75.20%. SunCar Technology Group has a consensus target price of $4.75, suggesting a potential upside of 141.12%. Given SunCar Technology Group’s higher probable upside, analysts clearly believe SunCar Technology Group is more favorable than Real Brokerage.

Profitability

This table compares Real Brokerage and SunCar Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Real Brokerage	-0.58%	-25.22%	-8.76%
SunCar Technology Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Real Brokerage and SunCar Technology Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Brokerage	$1.26 billion	0.62	-$26.54 million	($0.04)	-92.75
SunCar Technology Group	$441.90 million	0.46	-$68.66 million	($0.07)	-28.14

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

Risk & Volatility

Real Brokerage has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, SunCar Technology Group has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500.

Insider & Institutional Ownership

53.3% of Real Brokerage shares are held by institutional investors. Comparatively, 0.3% of SunCar Technology Group shares are held by institutional investors. 38.2% of Real Brokerage shares are held by insiders. Comparatively, 22.2% of SunCar Technology Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Real Brokerage beats SunCar Technology Group on 9 of the 14 factors compared between the two stocks.

About Real Brokerage

The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.

About SunCar Technology Group

SunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The company offers customized after-sale services to banking, insurance companies, and other customer types; and auto mobile insurance comprising statutory automobile liability insurance and commercial automobile insurance. In addition, it provides auto insurance SaaS products and other technical services. The company is based in Shanghai, China.