Critical Comparison: La Rosa (NASDAQ:LRHC) vs. Douglas Elliman (NYSE:DOUG)

Douglas Elliman (NYSE:DOUG) and La Rosa (NASDAQ:LRHC) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Douglas Elliman and La Rosa, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Elliman	0	1	0	0	2.00
La Rosa	0	0	0	0	N/A

Institutional and Insider Ownership

59.6% of Douglas Elliman shares are held by institutional investors. Comparatively, 7.6% of La Rosa shares are held by institutional investors. 10.3% of Douglas Elliman shares are held by insiders. Comparatively, 53.3% of La Rosa shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Douglas Elliman and La Rosa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Douglas Elliman	-7.05%	-20.62%	-9.64%
La Rosa	N/A	N/A	N/A

Earnings and Valuation

This table compares Douglas Elliman and La Rosa’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Elliman	$955.58 million	0.11	-$42.55 million	($0.80)	-1.45
La Rosa	$31.76 million	0.98	-$7.82 million	N/A	N/A

La Rosa has lower revenue, but higher earnings than Douglas Elliman.

Summary

La Rosa beats Douglas Elliman on 6 of the 8 factors compared between the two stocks.

About Douglas Elliman

Douglas Elliman Inc. owns Douglas Elliman Realty, LLC, operating as a residential brokerage company in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology (“PropTech”) solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets.

About La Rosa

La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. The company operates through five segments: Real Estate Brokerage Services (Residential), Franchising Services, Coaching Services, Property Management, and Real Estate Brokerage Services (Commercial). It delivers coaching services to its brokers and franchisee's brokers; and franchises real estate brokerage agencies. The company also engages in the residential and commercial real estate brokerage business; and property management services to owners of single-family residential properties. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, Florida.