Offerpad Solutions (NYSE:OPAD) & AMREP (NYSE:AXR) Head-To-Head Contrast

AMREP (NYSE:AXR) and Offerpad Solutions (NYSE:OPAD) are both small-cap real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Earnings & Valuation

This table compares AMREP and Offerpad Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMREP	$52.85 million	2.33	$10.29 million	$1.90	12.17
Offerpad Solutions	$404.53 million	0.05	-$46.38 million	($10.24)	-0.40

AMREP has higher earnings, but lower revenue than Offerpad Solutions. Offerpad Solutions is trading at a lower price-to-earnings ratio than AMREP, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

AMREP has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Offerpad Solutions has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500.

Institutional and Insider Ownership

59.9% of AMREP shares are held by institutional investors. Comparatively, 39.4% of Offerpad Solutions shares are held by institutional investors. 37.4% of AMREP shares are held by company insiders. Comparatively, 16.7% of Offerpad Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares AMREP and Offerpad Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMREP	19.47%	7.47%	7.23%
Offerpad Solutions	-9.85%	-99.08%	-23.21%

Analyst Ratings

This is a breakdown of current ratings for AMREP and Offerpad Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMREP	0	2	0	0	2.00
Offerpad Solutions	1	1	1	0	2.00

Offerpad Solutions has a consensus price target of $24.83, suggesting a potential upside of 505.69%. Given Offerpad Solutions’ higher probable upside, analysts plainly believe Offerpad Solutions is more favorable than AMREP.

Summary

AMREP beats Offerpad Solutions on 9 of the 13 factors compared between the two stocks.

About AMREP

AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.

About Offerpad Solutions

Offerpad Solutions Inc., together with its subsidiaries, provides technology-enabled solutions for residential real estate market in the United States. It operates iBuying, a real estate solutions platform for on-demand customer that provides home buyers the opportunity to browse and tour homes online. It buys and sells homes through cash offer and listing services. In addition, the company offers renovation services; and ancillary products and services, including mortgage, title insurance, and escrow services, as well as Offerpad Bundle Rewards program that allows customers to receive various discounts when selling and buying a home. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.