AMREP (NYSE:AXR – Get Free Report) and Real REMAX Group (NASDAQ:REAX – Get Free Report) are both small-cap real estate companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Earnings and Valuation
This table compares AMREP and Real REMAX Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AMREP | $41.05 million | 2.78 | $10.29 million | $1.08 | 19.86 |
| Real REMAX Group | $1.97 billion | 0.14 | -$8.10 million | ($0.70) | -18.09 |
AMREP has higher earnings, but lower revenue than Real REMAX Group. Real REMAX Group is trading at a lower price-to-earnings ratio than AMREP, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for AMREP and Real REMAX Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AMREP | 0 | 3 | 0 | 0 | 2.00 |
| Real REMAX Group | 1 | 2 | 7 | 2 | 2.83 |
AMREP presently has a consensus price target of $22.00, suggesting a potential upside of 2.55%. Real REMAX Group has a consensus price target of $37.62, suggesting a potential upside of 197.20%. Given Real REMAX Group’s stronger consensus rating and higher possible upside, analysts clearly believe Real REMAX Group is more favorable than AMREP.
Volatility & Risk
AMREP has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Real REMAX Group has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
Institutional and Insider Ownership
59.8% of AMREP shares are held by institutional investors. Comparatively, 53.3% of Real REMAX Group shares are held by institutional investors. 37.4% of AMREP shares are held by company insiders. Comparatively, 38.2% of Real REMAX Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares AMREP and Real REMAX Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AMREP | 14.31% | 4.21% | 4.09% |
| Real REMAX Group | -3.46% | -37.30% | -14.69% |
Summary
AMREP beats Real REMAX Group on 9 of the 15 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 Real REMAX Group
The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.
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