Legacy Housing (NASDAQ:LEGH) and RE/MAX (NYSE:RMAX) Head to Head Comparison

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Housing	0	3	0	1	2.50
RE/MAX	1	0	1	0	2.00

Legacy Housing currently has a consensus price target of $21.00, suggesting a potential downside of 19.39%. RE/MAX has a consensus price target of $13.80, suggesting a potential upside of 28.62%. Given RE/MAX’s higher possible upside, analysts clearly believe RE/MAX is more favorable than Legacy Housing.

Volatility & Risk

Legacy Housing has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, RE/MAX has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500.

Earnings and Valuation

This table compares Legacy Housing and RE/MAX”s top-line 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	3.76	$41.81 million	$1.78	14.63
RE/MAX	$291.60 million	0.78	$8.15 million	$0.01	1,072.90

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%

Insider & Institutional Ownership

89.3% of Legacy Housing shares are owned by institutional investors. Comparatively, 93.2% of RE/MAX shares are owned by institutional investors. 30.1% of Legacy Housing shares are owned by insiders. Comparatively, 6.8% of RE/MAX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Legacy Housing beats RE/MAX on 9 of the 15 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.