Real Brokerage (NASDAQ:REAX) and SunCar Technology Group (NASDAQ:SDA) Critical Analysis

SunCar Technology Group (NASDAQ:SDA) and Real Brokerage (NASDAQ:REAX) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares SunCar Technology Group and Real Brokerage”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunCar Technology Group	$441.90 million	0.46	-$68.66 million	($0.07)	-28.29
Real Brokerage	$1.26 billion	0.59	-$26.54 million	($0.04)	-88.50

Real Brokerage has higher revenue and earnings than SunCar Technology Group. Real Brokerage is trading at a lower price-to-earnings ratio than SunCar Technology Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for SunCar Technology Group and Real Brokerage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunCar Technology Group	1	0	2	0	2.33
Real Brokerage	1	0	2	1	2.75

SunCar Technology Group presently has a consensus price target of $4.75, indicating a potential upside of 139.90%. Real Brokerage has a consensus price target of $6.50, indicating a potential upside of 83.62%. Given SunCar Technology Group’s higher possible upside, research analysts clearly believe SunCar Technology Group is more favorable than Real Brokerage.

Volatility & Risk

SunCar Technology Group has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Real Brokerage has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

0.3% of SunCar Technology Group shares are held by institutional investors. Comparatively, 53.3% of Real Brokerage shares are held by institutional investors. 22.2% of SunCar Technology Group shares are held by insiders. Comparatively, 38.2% of Real Brokerage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares SunCar Technology Group and Real Brokerage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunCar Technology Group	N/A	N/A	N/A
Real Brokerage	-0.58%	-25.22%	-8.76%

Summary

Real Brokerage beats SunCar Technology Group on 9 of the 14 factors compared between the two stocks.

About SunCar Technology Group

SunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The company offers customized after-sale services to banking, insurance companies, and other customer types; and auto mobile insurance comprising statutory automobile liability insurance and commercial automobile insurance. In addition, it provides auto insurance SaaS products and other technical services. The company is based in Shanghai, China.

About Real Brokerage

The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.