Exp World (NASDAQ:EXPI – Get Free Report) and The RMR Group (NASDAQ:RMR – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Volatility and Risk
Exp World has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500. Comparatively, The RMR Group has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Earnings and Valuation
This table compares Exp World and The RMR Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Exp World | $4.57 billion | 0.31 | -$21.27 million | ($0.12) | -75.33 |
| The RMR Group | $700.28 million | 0.69 | $17.60 million | $1.05 | 14.43 |
The RMR Group has lower revenue, but higher earnings than Exp World. Exp World is trading at a lower price-to-earnings ratio than The RMR Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
27.2% of Exp World shares are held by institutional investors. Comparatively, 42.3% of The RMR Group shares are held by institutional investors. 28.0% of Exp World shares are held by company insiders. Comparatively, 54.7% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Exp World and The RMR Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Exp World | -0.41% | -6.61% | -3.26% |
| The RMR Group | 2.48% | 4.60% | 2.80% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Exp World and The RMR Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Exp World | 1 | 1 | 1 | 0 | 2.00 |
| The RMR Group | 1 | 1 | 1 | 1 | 2.50 |
Exp World currently has a consensus target price of $12.00, indicating a potential upside of 32.74%. The RMR Group has a consensus target price of $20.50, indicating a potential upside of 35.31%. Given The RMR Group’s stronger consensus rating and higher possible upside, analysts clearly believe The RMR Group is more favorable than Exp World.
Dividends
Exp World pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 11.9%. Exp World pays out -166.7% of its earnings in the form of a dividend. The RMR Group pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exp World has increased its dividend for 3 consecutive years and The RMR Group has increased its dividend for 1 consecutive years.
Summary
The RMR Group beats Exp World on 13 of the 17 factors compared between the two stocks.
About Exp World
eXp World Holdings, Inc., together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through North American Realty, International Realty, Virbela, and Other Affiliated Services segments. It provides Virbela, a cloud-based technologies that provides data, lead generation, and marketing tools for real estate agents and employees. In addition, the company offers SUCCESS print magazine, SUCCESS.com portal, SUCCESS newsletters, SUCCESS podcasts, SUCCESS plus, SUCCESS speakers bureau, and SUCCESS coaching, podcasts, and digital training courses. It operates in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, and Poland. 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 incorporated in 2008 and is based in Bellingham, Washington.
About The RMR Group
The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.
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