Critical Comparison: AMREP (NYSE:AXR) versus Marcus & Millichap (NYSE:MMI)

Marcus & Millichap (NYSE:MMI) and AMREP (NYSE:AXR) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Valuation & Earnings

This table compares Marcus & Millichap and AMREP”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marcus & Millichap	$696.06 million	1.52	-$12.36 million	($0.16)	-170.31
AMREP	$45.95 million	2.52	$12.72 million	$1.95	11.18

AMREP has lower revenue, but higher earnings than Marcus & Millichap. Marcus & Millichap is trading at a lower price-to-earnings ratio than AMREP, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

62.8% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 59.8% of AMREP shares are owned by institutional investors. 39.2% of Marcus & Millichap shares are owned by company insiders. Comparatively, 37.2% of AMREP shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Marcus & Millichap and AMREP’s 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%
AMREP	22.86%	7.98%	7.73%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Marcus & Millichap and AMREP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marcus & Millichap	2	2	0	0	1.50
AMREP	0	1	0	0	2.00

Marcus & Millichap presently has a consensus price target of $29.00, indicating a potential upside of 6.43%. Given Marcus & Millichap’s higher possible upside, equities analysts plainly believe Marcus & Millichap is more favorable than AMREP.

Risk & Volatility

Marcus & Millichap has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, AMREP has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Summary

AMREP beats Marcus & Millichap on 9 of the 13 factors compared between the two stocks.

About Marcus & Millichap

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.

About AMREP

AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.