Landmark Infrastructure Partners (NASDAQ: LMRK) and Marcus & Millichap (NYSE:MMI) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitabiliy, analyst recommendations, earnings, dividends and risk.
Profitability
This table compares Landmark Infrastructure Partners and Marcus & Millichap’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Landmark Infrastructure Partners | 26.38% | 9.75% | 2.74% |
| Marcus & Millichap | 8.75% | 24.81% | 17.09% |
Volatility & Risk
Landmark Infrastructure Partners has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.
Dividends
Landmark Infrastructure Partners pays an annual dividend of $1.42 per share and has a dividend yield of 8.4%. Marcus & Millichap does not pay a dividend. Landmark Infrastructure Partners pays out 263.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
This is a summary of current ratings and price targets for Landmark Infrastructure Partners and Marcus & Millichap, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Landmark Infrastructure Partners | 0 | 0 | 2 | 0 | 3.00 |
| Marcus & Millichap | 0 | 3 | 0 | 0 | 2.00 |
Landmark Infrastructure Partners presently has a consensus target price of $17.50, indicating a potential upside of 2.94%. Marcus & Millichap has a consensus target price of $27.00, indicating a potential upside of 6.38%. Given Marcus & Millichap’s higher probable upside, analysts plainly believe Marcus & Millichap is more favorable than Landmark Infrastructure Partners.
Earnings & Valuation
This table compares Landmark Infrastructure Partners and Marcus & Millichap’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Landmark Infrastructure Partners | $44.58 million | 8.70 | $35.68 million | $0.54 | 31.48 |
| Marcus & Millichap | $706.39 million | 1.37 | $105.37 million | $1.59 | 15.96 |
Marcus & Millichap has higher revenue and earnings than Landmark Infrastructure Partners. Marcus & Millichap is trading at a lower price-to-earnings ratio than Landmark Infrastructure Partners, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
21.1% of Landmark Infrastructure Partners shares are owned by institutional investors. Comparatively, 42.7% of Marcus & Millichap shares are owned by institutional investors. 0.7% of Landmark Infrastructure Partners shares are owned by insiders. Comparatively, 58.3% of Marcus & Millichap shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Marcus & Millichap beats Landmark Infrastructure Partners on 10 of the 16 factors compared between the two stocks.
About Landmark Infrastructure Partners
Landmark Infrastructure Partners LP is a master limited partnership formed to acquire, own and manage a portfolio of real property interests that it leases to companies in the wireless communication, outdoor advertising and renewable power generation industries. The Company operates through three segments. The Wireless Communication segment consists of leasing real property interests and financing to companies in the wireless communication industry in the United States. The Outdoor Advertising segment consists of leasing real property interests to companies in the outdoor advertising industry in the United States. The Renewable Power Generation segment consists of leasing real property interests and financing to companies in the renewable power industry in the United States. The Company’s real property interests consist of a portfolio of long term and perpetual easements, tenant lease assignments and fee simple properties located primarily in the United States.
About Marcus & Millichap
Marcus & Millichap, Inc. is a brokerage company specializing in commercial real estate investment sales, financing, research and advisory services. The Company offers three primary services to its clients: commercial real estate investment brokerage, financing, and ancillary services, including other research, advisory and consulting services. It provides its financing services through Marcus & Millichap Capital Corporation, which is a broker of debt financing for commercial properties. Its research, advisory and consulting services are designed to assist clients in forming their investment strategy and making transaction decisions. Its advisory services include opinions of value, operating and financial performance benchmarking analysis, and specific asset buy-sell strategies. As of December 31, 2016, the Company had over 1,700 investment sales and financing professionals in 82 offices in the United States and Canada that provide investment brokerage and financing services.
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