The RMR Group (NASDAQ:RMR) and Fathom (NASDAQ:FTHM) Head to Head Contrast

Fathom (NASDAQ:FTHM) and The RMR Group (NASDAQ:RMR) are both small-cap real estate companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Profitability

This table compares Fathom and The RMR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fathom	-6.27%	-75.89%	-33.25%
The RMR Group	3.10%	2.96%	1.71%

Insider & Institutional Ownership

55.5% of Fathom shares are held by institutional investors. Comparatively, 42.3% of The RMR Group shares are held by institutional investors. 16.4% of Fathom shares are held by company insiders. Comparatively, 54.7% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Fathom and The RMR Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fathom	$420.48 million	0.01	-$20.31 million	($0.80)	-0.18
The RMR Group	$638.98 million	0.79	$17.60 million	$1.14	13.82

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Fathom and The RMR Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fathom	1	0	0	1	2.50
The RMR Group	0	2	3	0	2.60

Fathom currently has a consensus price target of $2.50, indicating a potential upside of 1,614.68%. The RMR Group has a consensus price target of $21.33, indicating a potential upside of 35.45%. Given Fathom’s higher possible upside, analysts clearly believe Fathom is more favorable than The RMR Group.

Volatility and Risk

Fathom has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, The RMR Group has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Summary

The RMR Group beats Fathom on 11 of the 15 factors compared between the two stocks.

About Fathom

Fathom Holdings Inc. is a technology-driven real estate services company that operates primarily through its Fathom Realty brokerage. The company provides residential real estate brokerage services through a network of independent agents who assist clients with buying, selling and leasing properties. Fathom Realty supports its agents with a cloud-based platform that includes transaction management, marketing, lead generation, training and other business tools. The company has also expanded its offerings into related real estate services, including title and settlement services, insurance and technology solutions designed to support real estate professionals and consumers.

About The RMR Group

The RMR Group Inc. is a U.S.-based alternative asset management company that provides management services to real estate and related businesses. Its clients include publicly traded real estate investment trusts, real estate operating companies and private capital vehicles. RMR’s services include property and business management, asset management, leasing, acquisitions and dispositions, financing, development and advisory support. The businesses it manages operate across a range of real estate sectors, including senior living, healthcare, office, industrial and retail.