Critical Review: reAlpha Tech (NASDAQ:AIRE) versus FRP (NASDAQ:FRPH)

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for reAlpha Tech and FRP, as reported by MarketBeat.com.

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

reAlpha Tech currently has a consensus price target of $3.00, suggesting a potential upside of 158.62%. Given reAlpha Tech’s stronger consensus rating and higher probable upside, equities analysts clearly believe reAlpha Tech is more favorable than FRP.

Profitability

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

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

Institutional & Insider Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
reAlpha Tech	$310,000.00	171.64	N/A	N/A	N/A
FRP	$41.51 million	14.62	$5.30 million	$0.40	79.70

FRP has higher revenue and earnings than reAlpha Tech.

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.

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.