KE (NYSE:BEKE – Get Free Report) and Compass (NYSE:COMP – Get Free Report) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Volatility & Risk
KE has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500. Comparatively, Compass has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500.
Insider and Institutional Ownership
39.3% of KE shares are owned by institutional investors. Comparatively, 67.0% of Compass shares are owned by institutional investors. 6.8% of KE shares are owned by company insiders. Comparatively, 2.9% of Compass shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares KE and Compass”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KE | $13.52 billion | 1.49 | $428.13 million | $0.61 | 29.58 |
| Compass | $6.96 billion | N/A | -$58.50 million | $0.06 | 151.58 |
KE has higher revenue and earnings than Compass. KE is trading at a lower price-to-earnings ratio than Compass, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares KE and Compass’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KE | 5.38% | 7.62% | 4.38% |
| Compass | 0.63% | 3.62% | 1.37% |
Analyst Ratings
This is a summary of recent ratings and price targets for KE and Compass, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KE | 0 | 1 | 6 | 1 | 3.00 |
| Compass | 0 | 6 | 10 | 1 | 2.71 |
KE currently has a consensus target price of $23.64, indicating a potential upside of 31.01%. Compass has a consensus target price of $13.50, indicating a potential upside of 48.43%. Given Compass’ higher probable upside, analysts plainly believe Compass is more favorable than KE.
Summary
KE beats Compass on 8 of the 13 factors compared between the two stocks.
About KE
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
About Compass
Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports. It also provides full-service title and escrow/settlement services to real estate agents' clients, real estate companies, and financial institutions relating to the closing of home purchases as well as the refinancing of home loans; and Compass Concierge, a program in which home sellers access to capital to front the cost of home improvement services. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was incorporated in 2012 and is headquartered in New York, New York.
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