Marcus & Millichap, Inc. (MMI) vs Real REMAX Group Inc. (REAX)

Marcus & Millichap, Inc. and Real REMAX Group Inc. are both Real Estate Services companies. Marcus & Millichap, Inc. is the larger, with a market value of $1.2B against $566.0M — 2.0× the size. Real REMAX Group Inc. has negative trailing earnings, so its P/E is not meaningful; Marcus & Millichap, Inc. trades at 81.2×. Real REMAX Group Inc. grew revenue faster over the last twelve months: 38.4% against 11.9%. Marcus & Millichap, Inc. has the higher net margin (1.77% vs −0.72%) and the higher return on invested capital (1.61% vs 0.00%). Across the 18 metrics below, Marcus & Millichap, Inc. leads on 11 and Real REMAX Group Inc. on 7.

Valuation

Metric MMI REAX Real Estate Services median
P/E 81.24 n/m 16.25
P/S 1.39 0.17 1.12
P/B 1.94 4.81 1.32
Price to free cash flow 13.32 4.82 13.29
EV/EBITDA 48.66 n/m 10.22
EV/Sales 1.22 0.11 1.16
Earnings yield 1.23% (3.98%) 0.99%
Free cash flow yield 7.51% 20.76% (0.97%)

Profitability

Metric MMI REAX Real Estate Services median
Gross margin 37.72% 8.23% 26.81%
Operating margin 1.17% (0.72%) 0.00%
Net margin 1.77% (0.72%) 0.11%
Free cash flow margin 10.41% 3.51% 0.00%
Return on equity 2.42% (25.23%) 0.94%
Return on assets 1.84% (8.87%) 0.00%
Return on invested capital 1.61% 0.00% 0.00%

Growth

Metric MMI REAX Real Estate Services median
Revenue growth (TTM) 11.89% 38.44% 4.33%
EPS growth (last fiscal year) 84.38% 71.43% —
Revenue growth, 5-year CAGR 1.05% 160.03% 4.05%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MMI REAX Real Estate Services median
Debt to equity 0.00 0.00 0.08
Current ratio 2.92 2.38 1.95
Net debt to EBITDA 156.54 8.45 0.54

Dividend

Metric MMI REAX Real Estate Services median
Dividend yield 1.33% — 1.33%
Payout ratio 1.35 0.00 0.00

Size

Metric MMI REAX Real Estate Services median
Market cap 1.15b 566.00m 218.52m

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