Kennedy-Wilson Holdings (KW) vs. RE/MAX Holdings (RMAX) Head-To-Head Review
Kennedy-Wilson Holdings (NYSE: KW) and RE/MAX Holdings (NYSE:RMAX) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Kennedy-Wilson Holdings pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. RE/MAX Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Kennedy-Wilson Holdings pays out 377.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RE/MAX Holdings pays out 55.0% of its earnings in the form of a dividend. Kennedy-Wilson Holdings has increased its dividend for 6 consecutive years and RE/MAX Holdings has increased its dividend for 2 consecutive years. Kennedy-Wilson Holdings is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Kennedy-Wilson Holdings has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, RE/MAX Holdings has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Kennedy-Wilson Holdings and RE/MAX Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kennedy-Wilson Holdings currently has a consensus price target of $29.67, indicating a potential upside of 52.53%. RE/MAX Holdings has a consensus price target of $63.80, indicating a potential downside of 5.06%. Given Kennedy-Wilson Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Kennedy-Wilson Holdings is more favorable than RE/MAX Holdings.
Earnings & Valuation
This table compares Kennedy-Wilson Holdings and RE/MAX Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kennedy-Wilson Holdings||$725.90 million||3.06||$234.50 million||$0.18||108.06|
|RE/MAX Holdings||$187.03 million||6.36||$95.88 million||$1.31||51.30|
Kennedy-Wilson Holdings has higher revenue and earnings than RE/MAX Holdings. RE/MAX Holdings is trading at a lower price-to-earnings ratio than Kennedy-Wilson Holdings, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
84.5% of Kennedy-Wilson Holdings shares are owned by institutional investors. 17.1% of Kennedy-Wilson Holdings shares are owned by company insiders. Comparatively, 0.6% of RE/MAX Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Kennedy-Wilson Holdings and RE/MAX Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kennedy-Wilson Holdings beats RE/MAX Holdings on 11 of the 17 factors compared between the two stocks.
About Kennedy-Wilson Holdings
Kennedy-Wilson Holdings, Inc. is a real estate investment company. The Company owns, operates, and invests in real estate both on its own and through its investment management platform. The Company focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy and Japan. The Company’s segments include KW Investments, and KW Investment Management and Real Estate Services (IMRES). KW Investments invests in multifamily, residential and commercial properties, as well as loans secured by real estate. IMRES provides real estate-related services to investors and lenders, with a focus on financial institution-based clients. As of December 31, 2016, the Company had an ownership interest in approximately 39 million square feet of property globally, including 25,943 multifamily rental units.
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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