Ellington Financial (NYSE:EFC – Get Free Report) and reAlpha Tech (NASDAQ:AIRE – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Volatility & Risk
Ellington Financial has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, reAlpha Tech has a beta of -7.44, meaning that its share price is 844% less volatile than the S&P 500.
Profitability
This table compares Ellington Financial and reAlpha Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ellington Financial | 106.40% | 10.26% | 0.81% |
| reAlpha Tech | -2,035.17% | -45.22% | -36.74% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ellington Financial | $282.19 million | 4.31 | $84.81 million | $1.38 | 9.71 |
| reAlpha Tech | $321,095.00 | 197.21 | N/A | N/A | N/A |
Ellington Financial has higher revenue and earnings than reAlpha Tech.
Analyst Ratings
This is a summary of recent ratings and price targets for Ellington Financial and reAlpha Tech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ellington Financial | 0 | 1 | 3 | 1 | 3.00 |
| reAlpha Tech | 0 | 0 | 1 | 0 | 3.00 |
Ellington Financial currently has a consensus target price of $14.00, suggesting a potential upside of 4.44%. reAlpha Tech has a consensus target price of $3.00, suggesting a potential upside of 118.18%. Given reAlpha Tech’s higher possible upside, analysts clearly believe reAlpha Tech is more favorable than Ellington Financial.
Institutional & Insider Ownership
55.6% of Ellington Financial shares are owned by institutional investors. Comparatively, 1.0% of reAlpha Tech shares are owned by institutional investors. 4.4% of Ellington Financial shares are owned by company insiders. Comparatively, 73.9% of reAlpha Tech shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Ellington Financial beats reAlpha Tech on 8 of the 11 factors compared between the two stocks.
About Ellington Financial
Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company acquires and manages residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime mortgage; RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity; residential mortgage loans; commercial mortgage-backed securities; and commercial mortgage loans and other commercial real estate debt. It also provides collateralized loan obligations; mortgage-related and non-mortgage-related derivatives; corporate debt and equity securities; corporate loans; and other strategic investments; and consumer loans and asset-backed securities backed by consumer and commercial assets. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Ellington Financial LLC was incorporated in 2007 and is headquartered in Old Greenwich, Connecticut.
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.
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