Reviewing FirstService (FSV) & Reis (REIS)

FirstService (NASDAQ: FSV) and Reis (NASDAQ:REIS) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Valuation and Earnings

This table compares FirstService and Reis’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FirstService $1.48 billion 1.64 $33.59 million $1.24 54.77
Reis $47.53 million 5.00 $2.78 million $0.10 207.00

FirstService has higher revenue and earnings than Reis. FirstService is trading at a lower price-to-earnings ratio than Reis, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FirstService and Reis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FirstService 2.74% 24.16% 5.65%
Reis 2.45% 1.20% 0.91%

Dividends

FirstService pays an annual dividend of $0.49 per share and has a dividend yield of 0.7%. Reis pays an annual dividend of $0.68 per share and has a dividend yield of 3.3%. FirstService pays out 39.5% of its earnings in the form of a dividend. Reis pays out 680.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

FirstService has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Reis has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

61.2% of FirstService shares are held by institutional investors. Comparatively, 59.2% of Reis shares are held by institutional investors. 21.6% of Reis shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for FirstService and Reis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FirstService 0 6 0 0 2.00
Reis 0 0 2 0 3.00

FirstService currently has a consensus target price of $66.50, indicating a potential downside of 2.09%. Reis has a consensus target price of $24.50, indicating a potential upside of 18.36%. Given Reis’ stronger consensus rating and higher possible upside, analysts plainly believe Reis is more favorable than FirstService.

FirstService Company Profile

Firstservice Corporation is a provider of residential property management and other essential property services to residential and commercial customers. The Company operates through two segments: FirstService Residential and FirstService Brands. FirstService Residential is a property manager and provides ancillary services in the areas of on-site staffing, including building engineering and maintenance, full-service amenity management, security, concierge and front desk personnel, and landscaping; banking and insurance products, and energy conservation and management solutions. FirstService Brands provides essential property services to residential and commercial customers in North America through franchise networks and Company-owned locations. The principal brands in this division include Paul Davis Restoration, California Closets, Certa Pro Painters, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, Century Fire Protection and Service America.

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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