Re/Max (NYSE:RMAX) and eXp World (NASDAQ:EXPI) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.
This table compares Re/Max and eXp World’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Re/Max pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. eXp World does not pay a dividend. Re/Max pays out 41.6% of its earnings in the form of a dividend. Re/Max has raised its dividend for 4 consecutive years.
Insider & Institutional Ownership
99.6% of Re/Max shares are held by institutional investors. Comparatively, 5.2% of eXp World shares are held by institutional investors. 0.4% of Re/Max shares are held by company insiders. Comparatively, 47.2% of eXp World shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Re/Max and eXp World’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Re/Max||$212.63 million||3.40||$27.04 million||$2.02||20.17|
|eXp World||$500.15 million||1.17||-$22.43 million||($0.39)||-24.54|
Re/Max has higher earnings, but lower revenue than eXp World. eXp World is trading at a lower price-to-earnings ratio than Re/Max, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Re/Max has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, eXp World has a beta of 5.15, indicating that its share price is 415% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Re/Max and eXp World, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Re/Max presently has a consensus price target of $48.50, suggesting a potential upside of 19.02%. eXp World has a consensus price target of $20.00, suggesting a potential upside of 108.99%. Given eXp World’s stronger consensus rating and higher probable upside, analysts plainly believe eXp World is more favorable than Re/Max.
Re/Max beats eXp World on 11 of the 17 factors compared between the two stocks.
RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. The company offers its real estate franchise services under the RE/MAX brand name; and mortgage brokerage services under the Motto Mortgage brand. It also provides real estate technology solutions. The company was founded in 1973 and is headquartered in Denver, Colorado.
About eXp World
eXp World Holdings, Inc. provides cloud-based real estate brokerage services for residential real estate market in the United states and Canada. The company facilitates buyers to search real-time property listings and sellers to list their properties through its Website; and provides buyers and sellers access to a network of professional, consumer-centric agents, and brokers. It also offers access to collaborative tools and training services for real estate brokers and agents. In addition, the company provides marketing, training, and other support services to its brokers and agents through a proprietary technology enabled services, and technology and support services contracted to third parties. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was founded in 2008 and is based in Bellingham, Washington.
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