Critical Contrast: FRP (NASDAQ:FRPH) vs. reAlpha Tech (NASDAQ:AIRE)

FRP (NASDAQ:FRPH) and reAlpha Tech (NASDAQ:AIRE) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for FRP and reAlpha Tech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FRP	0	0	0	0	0.00
reAlpha Tech	0	0	1	0	3.00

reAlpha Tech has a consensus price target of $3.00, indicating a potential upside of 185.71%. Given reAlpha Tech’s stronger consensus rating and higher probable upside, analysts clearly believe reAlpha Tech is more favorable than FRP.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FRP	18.35%	1.67%	1.06%
reAlpha Tech	-2,035.17%	-45.22%	-36.74%

Insider and Institutional Ownership

45.4% of FRP shares are held by institutional investors. Comparatively, 1.0% of reAlpha Tech shares are held by institutional investors. 22.8% of FRP shares are held by company insiders. Comparatively, 73.9% of reAlpha Tech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares FRP and reAlpha Tech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FRP	$41.51 million	14.68	$5.30 million	$0.40	80.08
reAlpha Tech	$310,000.00	155.37	N/A	N/A	N/A

FRP has higher revenue and earnings than reAlpha Tech.

About FRP

FRP Holdings, Inc. engages in the real estate business in the United States. It operates through four segments: Industrial and Commercial, Mining Royalty Lands, Development, and Multifamily. The Industrial and Commercial segment owns, leases, and manages commercial properties. The Mining Royalty Lands segment leases and manages mining royalties owned by the company primarily in Florida, Georgia, and Virginia. The Development segment owns and monitors the use of parcels of land that are in various stages of development; and acquires, constructs, and develops primarily for apartment, retail, warehouse, and office buildings. The Multifamily segment owns, leases, and manages buildings through joint ventures. The company was incorporated in 2014 and is based in Jacksonville, Florida.

About reAlpha Tech

reAlpha Tech Corp., a real estate technology company, commercializes artificial intelligence (AI)-powered technologies. The company operates in two segments, Platform Services and Rental Business. The company offers and develops AI-based products and services to customers in the real-estate industry. These include reAlpha BRAIN, which utilizes a natural language processing program to scan through property data and choose the ones with a higher than expected industry standard return on investment; reAlpha HUMINT, which allows analysts to input qualitative features about a property and factor it into property evaluation; GENA to generate home descriptions; AIRE, a web-based AI application that provides data and insights about the real estate market; and reAlpha App, which allows syndicate members to acquire equity interests in the syndication LLC. It also leases short-term rental properties; and provides technical support services. The company was formerly known as eAlpha Asset Management, Inc. and changed its name to reAlpha Tech Corp. in March 2023. reAlpha Tech Corp. was founded in 2020 and is headquartered in Dublin, Ohio.