RMR Group (NYSE: RMR) and Redfin Corporation (NASDAQ:RDFN) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
RMR Group 31.72% 18.72% 17.66%
Redfin Corporation N/A N/A N/A

Valuation & Earnings

This table compares RMR Group and Redfin Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
RMR Group N/A N/A N/A N/A N/A
Redfin Corporation $267.19 million 6.97 -$22.52 million N/A N/A

RMR Group has higher revenue, but lower earnings than Redfin Corporation.

Analyst Recommendations

This is a summary of current ratings for RMR Group and Redfin Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RMR Group 0 2 2 0 2.50
Redfin Corporation 0 5 3 0 2.38

RMR Group currently has a consensus target price of $59.50, suggesting a potential upside of 11.21%. Redfin Corporation has a consensus target price of $26.86, suggesting a potential upside of 17.28%. Given Redfin Corporation’s higher probable upside, analysts plainly believe Redfin Corporation is more favorable than RMR Group.

Institutional & Insider Ownership

1.0% of Redfin Corporation shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

RMR Group Company Profile

The RMR Group Inc. is a holding company. The Company’s business is primarily conducted by its subsidiary, The RMR Group LLC (RMR LLC). The Company’s segments include RMR LLC and All Other Operations. RMR LLC manages a portfolio of publicly owned real estate and real estate related businesses. RMR LLC manages Government Properties Income Trust, a real estate investment trust (REIT) that primarily owns properties that are leased to government tenants; Hospitality Properties Trust, an REIT that primarily owns hotels and travel centers; Select Income REIT, an REIT that primarily owns properties leased to single tenants across the United States and leased lands in Hawaii, and Senior Housing Properties Trust, an REIT that primarily owns senior living communities and medical office buildings. As of June 30, 2016, RMR LLC managed over 1,300 properties, which were located in 48 states, Washington, District of Columbia, Puerto Rico and Canada.

Redfin Corporation Company Profile

Redfin Corporation is engaged in providing residential real estate brokerage services. The customer can search for homes by neighborhood, city or MLS number, or can refine results using detailed parameters, such as price and number of beds or baths. The Company serves home buyers and sellers. The Company offers online tools to consumers, including Redfin Estimate, which is an automated home-valuation tool. The customer can search homes for sale in Austin, Atlanta, Baltimore, Boston, Charlotte, Chicago, Dallas, Denver, Fort Lauderdale, Houston, Lake Tahoe, Las Vegas, Los Angeles, Miami, Philadelphia, Phoenix, Portland, OR, Raleigh, San Antonio, San Diego, San Francisco, Sacramento, San Jose, Seattle and Washington. The Company serves over 80 metro areas across the United States.

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