Analyzing Medalist Diversified REIT (NASDAQ:MDRR) & RE/MAX (NYSE:RMAX)

RE/MAX (NYSE:RMAX) and Medalist Diversified REIT (NASDAQ:MDRR) are both small-cap real estate companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Profitability

This table compares RE/MAX and Medalist Diversified REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RE/MAX	-3.04%	-81.65%	5.40%
Medalist Diversified REIT	80.24%	-15.18%	-6.46%

Insider and Institutional Ownership

93.2% of RE/MAX shares are held by institutional investors. Comparatively, 17.4% of Medalist Diversified REIT shares are held by institutional investors. 6.8% of RE/MAX shares are held by company insiders. Comparatively, 77.6% of Medalist Diversified REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares RE/MAX and Medalist Diversified REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RE/MAX	$291.60 million	0.90	$8.15 million	($0.42)	-29.43
Medalist Diversified REIT	$10.40 million	1.78	-$2.39 million	$3.83	2.97

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

Volatility and Risk

RE/MAX has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for RE/MAX and Medalist Diversified REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RE/MAX	1	0	1	0	2.00
Medalist Diversified REIT	0	1	0	0	2.00

RE/MAX currently has a consensus price target of $13.80, suggesting a potential upside of 11.65%. Given RE/MAX’s higher possible upside, research analysts clearly believe RE/MAX is more favorable than Medalist Diversified REIT.

Summary

RE/MAX beats Medalist Diversified REIT on 7 of the 13 factors compared between the two stocks.

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 Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.