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

Dividends

RE/MAX Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. 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 1.5% 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 competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares RE/MAX Holdings and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
RE/MAX Holdings $187.03 million $95.88 million 46.18
RE/MAX Holdings Competitors $1.67 billion $171.14 million 35.82

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

Profitability

This table compares RE/MAX Holdings and its competitors’ 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 3.03% 14.05% 2.86%

Risk & Volatility

RE/MAX Holdings has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, RE/MAX Holdings’ competitors have a beta of 1.60, suggesting that their average share price is 60% more volatile than the S&P 500.

Institutional and Insider Ownership

69.7% of shares of all “Real Estate Services” companies are held by institutional investors. 0.6% of RE/MAX Holdings shares are held by insiders. Comparatively, 12.8% of shares of all “Real Estate Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for RE/MAX Holdings and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RE/MAX Holdings 2 3 1 0 1.83
RE/MAX Holdings Competitors 122 407 648 18 2.47

RE/MAX Holdings presently has a consensus target price of $62.50, suggesting a potential upside of 3.31%. All “Real Estate Services” companies have a potential upside of 7.42%. Given RE/MAX Holdings’ competitors stronger consensus rating and higher possible upside, analysts plainly believe RE/MAX Holdings has less favorable growth aspects than its competitors.

Summary

RE/MAX Holdings competitors beat RE/MAX Holdings on 12 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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