Reviewing RE/MAX Holdings (RMAX) and Trulia (TRLA)

RE/MAX Holdings (NYSE: RMAX) and Trulia (NYSE:TRLA) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Dividends

RE/MAX Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Trulia does not pay a dividend. RE/MAX Holdings pays out 55.0% of its earnings in the form of a dividend. Trulia has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares RE/MAX Holdings and Trulia’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RE/MAX Holdings $187.03 million 5.71 $95.88 million $1.31 46.07
Trulia N/A N/A N/A N/A N/A

RE/MAX Holdings has higher revenue and earnings than Trulia.

Analyst Recommendations

This is a summary of recent ratings and target prices for RE/MAX Holdings and Trulia, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RE/MAX Holdings 2 3 1 0 1.83
Trulia 0 0 0 0 N/A

RE/MAX Holdings presently has a consensus price target of $62.50, suggesting a potential upside of 3.56%. Given RE/MAX Holdings’ higher possible upside, research analysts clearly believe RE/MAX Holdings is more favorable than Trulia.

Profitability

This table compares RE/MAX Holdings and Trulia’s 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%
Trulia -35.73% -26.12% -14.78%

Summary

RE/MAX Holdings beats Trulia on 7 of the 9 factors compared between the two stocks.

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.

About Trulia

Trulia, Inc. is a real estate search engine company. The Company’s marketplace, delivered through the web and mobile applications, gives consumers tools to research homes and neighborhoods and enables real estate professionals to market their listings and attract new clients. The Company also offers a suite of free and subscription products that provide real estate professionals with access to transaction-ready consumers and help them to grow and manage their online presence. For the year ended December 31, 2013, the Company had 38.8 million monthly unique visitors. As at December 31, 2013, the Company had more than 437,000 active real estate professionals in its Trulia marketplace and 157,000 active real estate professionals using its Market Leader software and services. Approximately 59,700 of these real estate professionals were paying subscribers (assuming 20% overlap between Trulia subscribers and Marker Leader’s premium subscribers).

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