eXp World (NASDAQ:EXPI) and Re/Max (NYSE:RMAX) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Volatility and Risk
eXp World has a beta of 5.15, meaning that its share price is 415% more volatile than the S&P 500. Comparatively, Re/Max has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
This table compares eXp World and Re/Max’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|eXp World||$500.15 million||1.17||-$22.43 million||($0.39)||-24.54|
|Re/Max||$212.63 million||3.40||$27.04 million||$2.02||20.17|
Re/Max has lower revenue, but higher earnings 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.
This table compares eXp World and Re/Max’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 and Institutional Ownership
5.2% of eXp World shares are held by institutional investors. Comparatively, 99.6% of Re/Max shares are held by institutional investors. 47.2% of eXp World shares are held by insiders. Comparatively, 0.4% of Re/Max shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent recommendations and price targets for eXp World and Re/Max, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
eXp World presently has a consensus target price of $20.00, indicating a potential upside of 108.99%. Re/Max has a consensus target price of $48.50, indicating a potential upside of 19.02%. Given eXp World’s stronger consensus rating and higher probable upside, analysts clearly 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.
eXp World Company Profile
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.
Re/Max Company Profile
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.
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