Critical Analysis: Real REMAX Group (REAX) versus The Competition

Real REMAX Group (NASDAQ:REAX) is one of 329 public companies in the “Real Estate Management & Development” industry, but how does it compare to its competitors? We will compare Real REMAX Group to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Earnings & Valuation

This table compares Real REMAX Group and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Real REMAX Group	$1.97 billion	-$8.10 million	-20.01
Real REMAX Group Competitors	$2.68 billion	-$400.38 million	9.66

Real REMAX Group’s competitors have higher revenue, but lower earnings than Real REMAX Group. Real REMAX Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Real REMAX Group has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Real REMAX Group’s competitors have a beta of -0.20, meaning that their average stock price is 120% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Real REMAX Group and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real REMAX Group	1	2	7	2	2.83
Real REMAX Group Competitors	1579	4684	7438	207	2.45

Real REMAX Group presently has a consensus target price of $41.67, indicating a potential upside of 197.41%. As a group, “Real Estate Management & Development” companies have a potential upside of 24.25%. Given Real REMAX Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Real REMAX Group is more favorable than its competitors.

Profitability

This table compares Real REMAX Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Real REMAX Group	-0.72%	-25.32%	-9.83%
Real REMAX Group Competitors	-263.81%	-682.75%	-1.07%

Insider and Institutional Ownership

53.3% of Real REMAX Group shares are owned by institutional investors. Comparatively, 32.5% of shares of all “Real Estate Management & Development” companies are owned by institutional investors. 38.2% of Real REMAX Group shares are owned by insiders. Comparatively, 27.1% of shares of all “Real Estate Management & Development” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Real REMAX Group beats its competitors on 10 of the 13 factors compared.

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.