RE/MAX Holdings (NYSE: RMAX) is one of 25 public companies in the “Real Estate Services” industry, but how does it contrast to its rivals? We will compare RE/MAX Holdings to related businesses based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

67.0% of shares of all “Real Estate Services” companies are owned by institutional investors. 0.6% of RE/MAX Holdings shares are owned by insiders. Comparatively, 12.4% of shares of all “Real Estate Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

RE/MAX Holdings has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, RE/MAX Holdings’ rivals have a beta of 1.57, meaning that their average stock price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for RE/MAX Holdings and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RE/MAX Holdings 2 3 2 0 2.00
RE/MAX Holdings Competitors 74 322 644 9 2.56

RE/MAX Holdings currently has a consensus target price of $63.80, suggesting a potential downside of 2.89%. As a group, “Real Estate Services” companies have a potential upside of 6.39%. Given RE/MAX Holdings’ rivals stronger consensus rating and higher probable upside, analysts plainly believe RE/MAX Holdings has less favorable growth aspects than its rivals.

Profitability

This table compares RE/MAX Holdings and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RE/MAX Holdings 12.45% 79.94% 11.81%
RE/MAX Holdings Competitors 4.57% 14.43% 3.06%

Dividends

RE/MAX Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. RE/MAX Holdings pays out 55.0% of its earnings in the form of a dividend. As a group, “Real Estate Services” companies pay a dividend yield of 1.4% and pay out 41.3% of their earnings in the form of a dividend. RE/MAX Holdings has increased its dividend for 2 consecutive years. RE/MAX Holdings lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares RE/MAX Holdings and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
RE/MAX Holdings $187.03 million $95.88 million 50.15
RE/MAX Holdings Competitors $1.67 billion $167.91 million 35.76

RE/MAX Holdings’ rivals have higher revenue and earnings than RE/MAX Holdings. RE/MAX Holdings is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

RE/MAX Holdings rivals beat RE/MAX Holdings on 11 of the 15 factors compared.

About RE/MAX Holdings

RE/MAX Holdings, Inc. is a franchisor in the real estate industry, franchising real estate brokerages around the world under the RE/MAX brand and mortgage brokerages within the United States under the Motto Mortgage brand. The Company is a franchised business, with all of the RE/MAX branded brokerage office locations being operated by franchisees, including RE/MAX, LLC, which owns the RE/MAX brand, and sells franchises and franchising rights; Independent Regional Franchise Owner, which owns rights to sell brokerage franchises in a specified region; Franchisee (or Broker-Owner), which operates a RE/MAX-branded brokerage office, lists properties and recruits agents, and Agent (or Sales Associate), including branded independent contractors operating out of local franchise brokerage offices. Under Motto business, the Company operates as a mortgage brokerage franchisor. As a franchisor, the Company helps its Motto franchisees to establish independent mortgage brokerage companies.

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