Critical Comparison: reAlpha Tech (NASDAQ:AIRE) and FirstService (NASDAQ:FSV)

reAlpha Tech (NASDAQ:AIRE) and FirstService (NASDAQ:FSV) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares reAlpha Tech and FirstService’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
reAlpha Tech	N/A	N/A	N/A
FirstService	2.32%	17.56%	5.50%

Earnings and Valuation

This table compares reAlpha Tech and FirstService’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
reAlpha Tech	$310,000.00	106.93	N/A	N/A	N/A
FirstService	$4.33 billion	1.56	$100.39 million	$2.24	67.30

FirstService has higher revenue and earnings than reAlpha Tech.

Institutional & Insider Ownership

1.0% of reAlpha Tech shares are owned by institutional investors. Comparatively, 69.4% of FirstService shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for reAlpha Tech and FirstService, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
reAlpha Tech	0	0	0	0	N/A
FirstService	0	1	5	0	2.83

FirstService has a consensus price target of $177.86, indicating a potential upside of 17.79%. Given FirstService’s higher possible upside, analysts clearly believe FirstService is more favorable than reAlpha Tech.

Summary

FirstService beats reAlpha Tech on 7 of the 8 factors compared between the two stocks.

About reAlpha Tech

reAlpha Tech Corp., a real estate technology company, focuses on developing, utilizing, and commercializing real-estate focused artificial intelligence (AI). The company operates in two segments, Platform Services and Rental Business. The Platform Services segment offers and develops AI-based products and services to customers in the real-estate industry. The Rental Business segment focuses on purchasing properties for syndication, which is powered by its platform services technologies. The company was formerly known as reAlpha Asset Management Inc. and changed its name to reAlpha Tech Corp. in March 2023. reAlpha Tech Corp. was incorporated in 2021 and is based in Dublin, Ohio.

About FirstService

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.