Analyzing RE/MAX (NYSE:RMAX) and Henderson Land Development (OTCMKTS:HLDCY)

RE/MAX (NYSE:RMAX) and Henderson Land Development (OTCMKTS:HLDCY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Volatility & Risk

RE/MAX has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Henderson Land Development has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares RE/MAX and Henderson Land Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RE/MAX	4.27%	-61.21%	5.10%
Henderson Land Development	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations for RE/MAX and Henderson Land Development, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RE/MAX	1	1	0	0	1.50
Henderson Land Development	0	0	0	1	4.00

RE/MAX currently has a consensus price target of $9.00, indicating a potential upside of 15.24%. Given RE/MAX’s higher possible upside, analysts plainly believe RE/MAX is more favorable than Henderson Land Development.

Earnings and Valuation

This table compares RE/MAX and Henderson Land Development”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RE/MAX	$307.68 million	0.51	$7.12 million	$0.61	12.80
Henderson Land Development	$2.63 billion	7.27	$807.15 million	N/A	N/A

Henderson Land Development has higher revenue and earnings than RE/MAX.

Institutional and Insider Ownership

93.2% of RE/MAX shares are owned by institutional investors. 6.8% of RE/MAX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About RE/MAX

RE/MAX Holdings, Inc. operates as a franchisor of real estate brokerage services in the United States, Canada, and internationally. It operates through Real Estate, Mortgage, and Marketing Funds segments. The company offers real estate brokerage franchising services under the RE/MAX brand; mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand; and mortgage loan processing software and services under the wemlo brand. It also provides kvCORE platform, which integrates a suite of digital products that enables agents, brokers, and teams to establish and manage client relationships; and RE/MAX University platform, a learning hub designed to help each agent in their professional expertise. The company was founded in 1973 and is headquartered in Denver, Colorado.

About Henderson Land Development

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Hotel Room Operation, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Hotel Room Operation segment operates hotel properties. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials. It also engages in food and beverage, and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.