LuxUrban Hotels (NASDAQ:LUXH) & reAlpha Tech (NASDAQ:AIRE) Head-To-Head Analysis

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

Institutional & Insider Ownership

1.0% of reAlpha Tech shares are held by institutional investors. Comparatively, 28.5% of LuxUrban Hotels shares are held by institutional investors. 72.0% of LuxUrban Hotels shares are held by company 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 reAlpha Tech and LuxUrban Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
reAlpha Tech	2,124.92%	23.53%	19.31%
LuxUrban Hotels	-69.25%	-11.23%	-0.28%

Earnings and Valuation

This table compares reAlpha Tech and LuxUrban Hotels’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
reAlpha Tech	$310,000.00	197.83	N/A	N/A	N/A
LuxUrban Hotels	$113.40 million	0.42	-$78.52 million	($2.13)	-0.54

reAlpha Tech has higher earnings, but lower revenue than LuxUrban Hotels.

Analyst Recommendations

This is a summary of recent ratings and price targets for reAlpha Tech and LuxUrban Hotels, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
reAlpha Tech	0	0	0	0	N/A
LuxUrban Hotels	0	0	2	0	3.00

LuxUrban Hotels has a consensus target price of $7.50, indicating a potential upside of 557.89%. Given LuxUrban Hotels’ higher possible upside, analysts clearly believe LuxUrban Hotels is more favorable than reAlpha Tech.

Summary

LuxUrban Hotels beats reAlpha Tech on 5 of the 9 factors compared between the two stocks.

About reAlpha Tech

reAlpha Tech Corp., a real estate technology company, focuses on developing, utilizing, and commercializing real-estate focused artificial intelligence (AI). The company operates in two segments, Platform Services and Rental Business. The Platform Services segment offers and develops AI-based products and services to customers in the real-estate industry. The Rental Business segment focuses on purchasing properties for syndication, which is powered by its platform services technologies. The company was formerly known as reAlpha Asset Management Inc. and changed its name to reAlpha Tech Corp. in March 2023. reAlpha Tech Corp. was incorporated in 2021 and is based in Dublin, Ohio.

About LuxUrban Hotels

LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. The company was incorporated in 2017 and is headquartered in Miami, Florida.