Reis (NASDAQ: REIS) and SouFun Holdings Limited (NYSE:SFUN) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

Reis pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. SouFun Holdings Limited does not pay a dividend. Reis pays out 680.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Reis and SouFun Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reis 2.49% 1.20% 0.92%
SouFun Holdings Limited -4.57% -9.01% -2.72%

Valuation and Earnings

This table compares Reis and SouFun Holdings Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Reis $46.93 million 4.34 $6.64 million $0.10 177.02
SouFun Holdings Limited $644.69 million 2.61 $9.32 million ($0.06) -63.50

SouFun Holdings Limited has higher revenue and earnings than Reis. SouFun Holdings Limited is trading at a lower price-to-earnings ratio than Reis, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Reis has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, SouFun Holdings Limited has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Reis and SouFun Holdings Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reis 0 0 2 0 3.00
SouFun Holdings Limited 2 3 2 0 2.00

Reis presently has a consensus price target of $24.50, indicating a potential upside of 38.42%. SouFun Holdings Limited has a consensus price target of $3.63, indicating a potential downside of 4.83%. Given Reis’ stronger consensus rating and higher possible upside, research analysts clearly believe Reis is more favorable than SouFun Holdings Limited.

Institutional and Insider Ownership

59.7% of Reis shares are owned by institutional investors. Comparatively, 46.2% of SouFun Holdings Limited shares are owned by institutional investors. 21.6% of Reis shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Reis beats SouFun Holdings Limited on 10 of the 14 factors compared between the two stocks.

Reis Company Profile

Reis, Inc. (Reis) is engaged in providing commercial real estate market information and analytical tools to real estate professionals, through its Reis Services subsidiary. The Company operates through Reis Services segment. It maintains a database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the United States. The database contains information on apartment, office, retail, warehouse or distribution, flex or research and development, self-storage and seniors housing properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. Its product portfolio includes Reis Subscriber Edition (SE), its delivery platform aimed at larger and mid-sized enterprises; ReisReports, aimed at prosumers and smaller enterprises, and Mobiuss Portfolio CRE (Mobiuss), aimed at risk managers and credit administrators at banks and non-bank lending institutions.

SouFun Holdings Limited Company Profile

Fang Holdings Limited, formerly SouFun Holdings Limited, operates as a real estate Internet portal in China. The Company’s Websites and mobile applications support active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors in China. The Company, through its Internet platform, is engaged in the development of transaction and financing platforms by offering direct sales services for new homes, online real estate brokerage services and financial services. The Company’s service offerings include marketing services, E-commerce services, listing services, Financial services and other value-added services. The Company provides secured loans in the form of entrusted loans and mortgage loans and unsecured loans primarily to home buyers, real estate developers and other borrowers that meet its credit assessment requirements.

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