Comparing The RMR Group (NASDAQ:RMR) and Lichen China (NASDAQ:LICN)

The RMR Group (NASDAQ:RMR) and Lichen China (NASDAQ:LICN) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Volatility & Risk

The RMR Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Lichen China has a beta of -0.46, meaning that its stock price is 146% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for The RMR Group and Lichen China, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The RMR Group	0	1	1	0	2.50
Lichen China	0	0	0	0	0.00

The RMR Group currently has a consensus price target of $32.00, suggesting a potential upside of 86.21%. Given The RMR Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe The RMR Group is more favorable than Lichen China.

Profitability

This table compares The RMR Group and Lichen China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The RMR Group	2.62%	5.83%	3.81%
Lichen China	N/A	N/A	N/A

Valuation and Earnings

This table compares The RMR Group and Lichen China”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The RMR Group	$855.39 million	0.64	$23.13 million	$1.33	12.92
Lichen China	$41.93 million	0.04	$8.34 million	N/A	N/A

The RMR Group has higher revenue and earnings than Lichen China.

Institutional and Insider Ownership

42.3% of The RMR Group shares are owned by institutional investors. 54.8% of The RMR Group shares are owned 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.

Summary

The RMR Group beats Lichen China on 12 of the 12 factors compared between the two stocks.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

About Lichen China

Lichen China Limited, together with its subsidiaries, operates as an investment holding company, provides financial and taxation, education support, and software and maintenance services in the People's Republic of China and internationally. The company offers financial and taxation related management consultation, internal control management consultation, annual or regular consultation, and internal training and general consultation services; and education support services, including marketing, operational, and technical support, as well as sells teaching and learning materials. It also provides Lichen Education Accounting Practice System V1.0, a financial and taxation training software, and academic affairs management system to partnered institutions under the partnership agreements, as well as offers software installation, training, and after sales technical and maintenance support services. Lichen China Limited was founded in 2004 and is based in Jinjiang, China.