Financial Review: Reis (REIS) versus Altisource Portfolio Solutions (NASDAQ:ASPS)

Reis (NASDAQ: REIS) and Altisource Portfolio Solutions (NASDAQ:ASPS) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares Reis and Altisource Portfolio Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Reis $46.93 million 4.17 $6.64 million $0.10 170.02
Altisource Portfolio Solutions $982.54 million 0.37 $148.76 million $0.28 71.18

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

Insider & Institutional Ownership

60.5% of Reis shares are held by institutional investors. Comparatively, 55.6% of Altisource Portfolio Solutions shares are held by institutional investors. 21.6% of Reis shares are held by insiders. Comparatively, 6.0% of Altisource Portfolio Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Reis pays an annual dividend of $0.68 per share and has a dividend yield of 4.0%. Altisource Portfolio Solutions 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.

Analyst Recommendations

This is a breakdown of recent ratings for Reis and Altisource Portfolio Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reis 0 0 2 0 3.00
Altisource Portfolio Solutions 0 2 0 0 2.00

Reis currently has a consensus target price of $24.50, indicating a potential upside of 44.12%. Altisource Portfolio Solutions has a consensus target price of $19.00, indicating a potential downside of 4.67%. Given Reis’ stronger consensus rating and higher possible upside, research analysts plainly believe Reis is more favorable than Altisource Portfolio Solutions.

Risk and Volatility

Reis has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Altisource Portfolio Solutions has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Reis and Altisource Portfolio Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reis 2.49% 1.20% 0.92%
Altisource Portfolio Solutions 0.60% 82.95% 8.76%

Summary

Reis beats Altisource Portfolio Solutions on 10 of the 16 factors compared between the two stocks.

About Reis

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.

About Altisource Portfolio Solutions

Altisource Portfolio Solutions S.A. is a marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. The Company’s business processes, vendor and electronic payment management software and behavioral science-based analytics manage outcomes for marketplace participants. It operates through three segments: Mortgage Services, Financial Services and Technology Services. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies. The Financial Services segment provides collection services to debt originators and servicers and customer relationship management services. The Technology Services segment provides software and data analytics solutions that support management of mortgage and real estate activities and marketplace transactions across mortgage and real estate lifecycles and information technology infrastructure management services.

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