Critical Analysis: Real Brokerage (NASDAQ:REAX) and MDJM (NASDAQ:MDJH)

Real Brokerage (NASDAQ:REAXGet Rating) and MDJM (NASDAQ:MDJHGet Rating) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Real Brokerage and MDJM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Real Brokerage -6.99% -36.40% -25.80%
MDJM N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Real Brokerage and MDJM, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Real Brokerage 0 0 1 0 3.00
MDJM 0 0 0 0 N/A

Real Brokerage presently has a consensus target price of $3.00, indicating a potential upside of 163.16%. Given Real Brokerage’s higher probable upside, equities analysts plainly believe Real Brokerage is more favorable than MDJM.

Institutional and Insider Ownership

21.4% of Real Brokerage shares are owned by institutional investors. Comparatively, 0.2% of MDJM shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Real Brokerage and MDJM’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Real Brokerage $121.68 million 1.67 -$11.68 million ($0.11) -10.36
MDJM $4.47 million 3.84 -$2.25 million N/A N/A

MDJM has lower revenue, but higher earnings than Real Brokerage.

Summary

MDJM beats Real Brokerage on 5 of the 9 factors compared between the two stocks.

About Real Brokerage (Get Rating)

The Real Brokerage Inc., together with its subsidiaries, operates as a technology-powered real estate brokerage company. It provides brokerage services for the real estate market through a network of agents. The company offers agents a mobile-focused tech platform to run its business, as well as business terms and wealth-building opportunities. It operates in 42 states in the United States, the District of Columbia, and Canada. The Real Brokerage Inc. is headquartered in Toronto, Canada.

About MDJM (Get Rating)

MDJM Ltd, through its subsidiaries and variable interest entity, operates as an integrated real estate services company in the People's Republic of China. It offers real estate agency services to real estate developers; and real estate consulting services, such as consulting, marketing strategy planning and strategy, and advertising services and sales strategies. The company also provides independent training and tourism development services. It serves real estate developers, real estate design institutes and agencies, urban planning bureaus of various levels of governments, and urban rail transportation companies, as well as urban infrastructure development companies. The company was formerly known as MDJLEAD LTD. and changed its name to MDJM Ltd in May 2018. MDJM Ltd was founded in 2002 and is headquartered in Tianjin, the People's Republic of China.

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