Here is a comparison of investing in real estate vs stocks in terms of profitability:

• Returns – Over the long run, stocks have tended to outperform residential real estate with average annual returns around 7-10% for stocks and 4-6% for real estate. However, real estate returns are more stable while stock returns can be volatile.
• Liquidity – Real estate is an illiquid investment, taking time, effort and fees to buy/sell. Stocks can be bought and sold easily online instantly. This gives stocks an advantage for flexibility.
• Leverage – Real estate benefits from the ability to use leverage through mortgages to amplify returns. Typically 20-25% down payments are required, providing leverage. Stocks can only be bought with cash upfront, no leverage.
• Diversification – Unless you own multiple properties, real estate provides minimal diversification. Stocks provide instant diversification, especially through broad market index funds.
• Costs – Real estate has high transaction costs like agent fees, closing costs, property taxes and maintenance expenses. Stocks have minimal holding costs like trading fees and fund expense ratios.
• Passive Income – Rental real estate can generate steady passive income. Stocks only produce capital gains through price appreciation or dividends.
• Tax Advantages – Principal residence real estate enjoys tax free capital gains. Rental properties provide benefits like depreciation. Stock returns are usually fully taxed at higher ordinary income rates.

So in general, stocks may be better for passive investors seeking high returns, liquidity and diversification. Real estate can hedge against stock volatility while also generating income, but requires more active management and local market knowledge. The optimal approach may be holding a blended portfolio of stocks and real estate property.