Marcus & Millichap (NYSE: MMI) and Landmark Infrastructure Partners (NASDAQ:LMRK) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Landmark Infrastructure Partners pays an annual dividend of $1.42 per share and has a dividend yield of 8.6%. 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.
Earnings and Valuation
This table compares Marcus & Millichap and Landmark Infrastructure Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marcus & Millichap||$703.37 million||1.38||$101.82 million||$1.54||16.53|
|Landmark Infrastructure Partners||$47.53 million||7.90||$38.35 million||$0.54||30.46|
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.
Volatility and Risk
Marcus & Millichap has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Landmark Infrastructure Partners has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.
This table compares Marcus & Millichap and Landmark Infrastructure Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marcus & Millichap||8.51%||22.56%||15.79%|
|Landmark Infrastructure Partners||26.38%||9.69%||2.65%|
This is a breakdown of current ratings and recommmendations for Marcus & Millichap and Landmark Infrastructure Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marcus & Millichap||0||3||0||0||2.00|
|Landmark Infrastructure Partners||0||0||2||0||3.00|
Marcus & Millichap currently has a consensus target price of $27.00, suggesting a potential upside of 6.05%. Landmark Infrastructure Partners has a consensus target price of $18.50, suggesting a potential upside of 12.46%. Given Landmark Infrastructure Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Landmark Infrastructure Partners is more favorable than Marcus & Millichap.
Insider & Institutional Ownership
42.4% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 21.1% of Landmark Infrastructure Partners shares are owned by institutional investors. 58.3% of Marcus & Millichap shares are owned by company insiders. Comparatively, 0.7% of Landmark Infrastructure Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Marcus & Millichap beats Landmark Infrastructure Partners on 9 of the 16 factors compared between the two stocks.
Marcus & Millichap Company Profile
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.
Landmark Infrastructure Partners Company Profile
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.
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