Legacy Housing (NASDAQ:LEGH) vs. RE/MAX (NYSE:RMAX) Head to Head Analysis

Legacy Housing (NASDAQ:LEGH) and RE/MAX (NYSE:RMAX) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Valuation & Earnings

This table compares Legacy Housing and RE/MAX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Housing	$164.57 million	3.56	$41.81 million	$1.78	13.85
RE/MAX	$291.60 million	0.68	$8.15 million	$0.01	940.50

Legacy Housing has higher earnings, but lower revenue than RE/MAX. Legacy Housing is trading at a lower price-to-earnings ratio than RE/MAX, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Legacy Housing and RE/MAX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Housing	26.01%	8.08%	7.44%
RE/MAX	0.13%	-90.29%	5.82%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Legacy Housing and RE/MAX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Housing	0	4	0	0	2.00
RE/MAX	1	0	1	0	2.00

Legacy Housing presently has a consensus target price of $21.00, indicating a potential downside of 14.81%. RE/MAX has a consensus target price of $13.80, indicating a potential upside of 46.73%. Given RE/MAX’s higher possible upside, analysts plainly believe RE/MAX is more favorable than Legacy Housing.

Insider and Institutional Ownership

89.4% of Legacy Housing shares are held by institutional investors. Comparatively, 93.2% of RE/MAX shares are held by institutional investors. 30.1% of Legacy Housing shares are held by company insiders. Comparatively, 6.8% of RE/MAX shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Legacy Housing has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, RE/MAX has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.

Summary

Legacy Housing beats RE/MAX on 7 of the 13 factors compared between the two stocks.

About Legacy Housing

Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.

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.