Compass vs Douglas Elliman Which Should You Buy?

Compass and Douglas Elliman are two prominent players in the real estate market, both offering brokerage services to clients looking to buy or sell properties. While Compass is a newer company disrupting the industry with its technology-driven approach, Douglas Elliman has a long history and established reputation in luxury real estate. Investors looking to capitalize on the real estate market may consider comparing the performance and potential of these two stocks to make informed investment decisions.

Compass or Douglas Elliman?

When comparing Compass and Douglas Elliman, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Compass and Douglas Elliman.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Compass has a dividend yield of -%, while Douglas Elliman has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%. On the other hand, Douglas Elliman reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Compass P/E ratio at -18.08 and Douglas Elliman's P/E ratio at -2.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Compass P/B ratio is 8.35 while Douglas Elliman's P/B ratio is 1.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Compass has seen a 5-year revenue growth of 3.20%, while Douglas Elliman's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and Douglas Elliman's ROE at -42.78%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.02 for Compass and $2.29 for Douglas Elliman. Over the past year, Compass's prices ranged from $2.57 to $7.69, with a yearly change of 199.22%. Douglas Elliman's prices fluctuated between $1.00 and $3.16, with a yearly change of 216.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.