HFF (NYSE: HF) and Reis (NASDAQ:REIS) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.
This is a breakdown of current recommendations and price targets for HFF and Reis, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HFF currently has a consensus target price of $28.00, suggesting a potential downside of 33.08%. Reis has a consensus target price of $24.50, suggesting a potential upside of 26.29%. Given Reis’ stronger consensus rating and higher probable upside, analysts clearly believe Reis is more favorable than HFF.
Valuation and Earnings
This table compares HFF and Reis’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HFF||$542.82 million||2.97||$84.87 million||$2.20||19.02|
|Reis||$46.93 million||4.76||$6.64 million||$0.10||194.02|
HFF has higher revenue and earnings than Reis. HFF is trading at a lower price-to-earnings ratio than Reis, indicating that it is currently the more affordable of the two stocks.
Reis pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. HFF 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.
Insider & Institutional Ownership
87.1% of HFF shares are owned by institutional investors. Comparatively, 59.7% of Reis shares are owned by institutional investors. 5.7% of HFF shares are owned by company insiders. Comparatively, 21.6% of Reis shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
HFF has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Reis has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
This table compares HFF and Reis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
HFF beats Reis on 9 of the 16 factors compared between the two stocks.
HFF Company Profile
HFF, Inc. is a holding company. The Company holds the partnership interests in Holliday Fenoglio Fowler, L.P. and HFF Securities L.P. (together, the Operating Partnerships), held through the subsidiary HFF Partnership Holdings, LLC, and all of the outstanding shares of Holliday GP Corp. (Holliday GP). The Company operates through the commercial real estate financial intermediary segment. It offers debt placement, investment sales, distressed debt and real estate owned advisory services, equity placement, investment banking and advisory services, loan sales and commercial loan servicing. Its fully-integrated national capital markets platform, coupled with its knowledge of the commercial real estate markets provides an range of capital markets services, including Debt placement; Investment sales; Distressed debt and real estate owned advisory services; Equity placement; Investment banking and advisory services; Loan sales; and Commercial loan servicing.
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.
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