AMREP (NYSE:AXR) versus New World Development (OTCMKTS:NDVLY) Head to Head Comparison

AMREP (NYSE:AXR) and New World Development (OTCMKTS:NDVLY) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Volatility & Risk

AMREP has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, New World Development has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Profitability

This table compares AMREP and New World Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMREP	24.40%	9.58%	9.26%
New World Development	N/A	N/A	N/A

Valuation & Earnings

This table compares AMREP and New World Development”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMREP	$53.00 million	2.52	$12.72 million	$2.40	10.49
New World Development	$3.55 billion	0.16	-$1.97 billion	N/A	N/A

AMREP has higher earnings, but lower revenue than New World Development.

Insider & Institutional Ownership

59.8% of AMREP shares are held by institutional investors. 37.2% of AMREP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for AMREP and New World Development, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMREP	0	2	0	0	2.00
New World Development	0	1	0	0	2.00

Summary

AMREP beats New World Development on 8 of the 9 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 New World Development

New World Development Company Limited, an investment holding company, operates in the property development and investment business in Hong Kong and Mainland China. Its property portfolio includes residential, retail, office, and industrial properties. The company also provides commercial aircraft leasing services; operates expressways; and constructs residential and commercial projects, as well as whole life, term, dread disease, medical, disability, and accident insurance products. In addition, it is involved in the duty-free operation and general trading, civil engineering, loyalty program, modern logistics, land development, marketing, promotion, fashion retailing and trading, and piling and ground investigation businesses; and development and operation of sports park. Further, the company manages Hong Kong convention and exhibition centre; operates toll roads, club houses, golf and tennis academies, and shopping malls; operates department stores; and provides information technology, endoscopic, healthcare, training course, ticketing, financial, project management and consultancy, retail and corporate sales, management, culture and recreation, advertising, building construction, estate agency, wellness and rehabilitation, endoscopic, carpark management, supply chain management, and catering services, as well as property management, business, and investment consultancy services. Additionally, it offers elderly residential places and services; property agency, management, and consultancy services; and undertakes foundation works. The company also invests in, owns, and operates hotel properties in Hong Kong, Mainland China, and the Southeast Asia. New World Development Company Limited was incorporated in 1970 and is headquartered in Central, Hong Kong.