Critical Analysis: Real Brokerage (NASDAQ:REAX) & WM Technology (NASDAQ:MAPS)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Real Brokerage and WM Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Brokerage	1	1	4	2	2.88
WM Technology	1	0	1	0	2.00

Real Brokerage presently has a consensus price target of $5.69, indicating a potential upside of 107.57%. WM Technology has a consensus price target of $2.61, indicating a potential upside of 645.71%. Given WM Technology’s higher probable upside, analysts plainly believe WM Technology is more favorable than Real Brokerage.

Volatility & Risk

Real Brokerage has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, WM Technology has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Valuation & Earnings

This table compares Real Brokerage and WM Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Brokerage	$1.97 billion	0.29	-$8.10 million	($0.03)	-91.33
WM Technology	$174.70 million	0.32	$1.96 million	$0.02	17.50

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

Insider and Institutional Ownership

53.3% of Real Brokerage shares are owned by institutional investors. Comparatively, 22.0% of WM Technology shares are owned by institutional investors. 38.2% of Real Brokerage shares are owned by company insiders. Comparatively, 23.6% of WM Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Real Brokerage	-0.41%	-17.37%	-6.21%
WM Technology	1.12%	1.51%	1.04%

Summary

WM Technology beats Real Brokerage on 9 of the 15 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 WM Technology

WM Technology, Inc. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States and internationally. The company offers Weedmaps marketplace that allows cannabis users to search for and browse cannabis products from retailers and brands, and reserve products from local retailers; and education and learning information to help newer consumers learn about the types of products to purchase. It also provides monthly subscription-based business software solutions, including WM Listings, WM Orders, WM Store, WM Connectors, and WM Insights as well as other add-on products, such as WM Ads, WM AdSuite, WM Customer Relationship Management, WM Dispatch, and WM Screens. WM Technology, Inc. was founded in 2008 and is headquartered in Irvine, California.