Analyzing Fangdd Network Group (NASDAQ:DUO) and FirstService (NASDAQ:FSV)

FirstService (NASDAQ:FSV) and Fangdd Network Group (NASDAQ:DUO) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for FirstService and Fangdd Network Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstService	0	1	5	0	2.83
Fangdd Network Group	0	0	0	0	N/A

FirstService presently has a consensus target price of $177.86, indicating a potential upside of 18.73%. Given FirstService’s higher probable upside, equities research analysts plainly believe FirstService is more favorable than Fangdd Network Group.

Volatility and Risk

FirstService has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Fangdd Network Group has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares FirstService and Fangdd Network Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstService	$4.33 billion	1.55	$100.39 million	$2.02	74.16
Fangdd Network Group	$284.96 million	0.01	-$35.38 million	N/A	N/A

FirstService has higher revenue and earnings than Fangdd Network Group.

Profitability

This table compares FirstService and Fangdd Network Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FirstService	2.02%	16.58%	5.16%
Fangdd Network Group	N/A	N/A	N/A

Insider and Institutional Ownership

69.4% of FirstService shares are owned by institutional investors. 35.2% of Fangdd Network Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

FirstService beats Fangdd Network Group on 9 of the 11 factors compared between the two stocks.

About FirstService

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.

About Fangdd Network Group

Fangdd Network Group Ltd., an investment holding company, provides real estate information services through online platforms in the People's Republic of China. It operates Property Cloud, a software as a service solution for real estate sellers. The company also operates platforms for real estate agents, including Duoduo Sales, which offers real estate agents with instant access to marketplace functionalities and allows them to conduct transactions on the go; Duoduo Cloud Sales, which connects agents to property database and buyer base, allowing them to source, manage, and complete transactions online; and provides supply-chain financial products and support transactions, as well as online and offline, and project-specific training and guidance services. In addition, it operates Fangduoduo that offers personalized services to potential real estate buyers; and provides information matching, real estate agency, financial, and channel services. The company was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China.