Exp World (NASDAQ:EXPI) & The RMR Group (NASDAQ:RMR) Financial Review

The RMR Group (NASDAQ:RMR) and Exp World (NASDAQ:EXPI) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares The RMR Group and Exp World’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The RMR Group	2.48%	4.60%	2.80%
Exp World	-0.41%	-6.61%	-3.26%

Insider and Institutional Ownership

42.3% of The RMR Group shares are owned by institutional investors. Comparatively, 27.2% of Exp World shares are owned by institutional investors. 54.7% of The RMR Group shares are owned by company insiders. Comparatively, 28.0% of Exp World shares are owned 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.

Dividends

The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 11.9%. Exp World pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. The RMR Group pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Exp World pays out -166.7% of its earnings in the form of a dividend. The RMR Group has increased its dividend for 1 consecutive years and Exp World has increased its dividend for 3 consecutive years.

Risk and Volatility

The RMR Group has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Exp World has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.

Earnings and Valuation

This table compares The RMR Group and Exp World”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The RMR Group	$700.28 million	0.69	$17.60 million	$1.05	14.42
Exp World	$4.57 billion	0.32	-$21.27 million	($0.12)	-76.67

The RMR Group has higher earnings, but lower revenue than Exp World. Exp World is trading at a lower price-to-earnings ratio than The RMR Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for The RMR Group and Exp World, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The RMR Group	1	1	1	1	2.50
Exp World	1	1	1	0	2.00

The RMR Group currently has a consensus target price of $20.50, suggesting a potential upside of 35.40%. Exp World has a consensus target price of $12.00, suggesting a potential upside of 30.43%. Given The RMR Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe The RMR Group is more favorable than Exp World.

Summary

The RMR Group beats Exp World on 13 of the 17 factors compared between the two stocks.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

About Exp World

eXp World Holdings, Inc., together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through North American Realty, International Realty, Virbela, and Other Affiliated Services segments. It provides Virbela, a cloud-based technologies that provides data, lead generation, and marketing tools for real estate agents and employees. In addition, the company offers SUCCESS print magazine, SUCCESS.com portal, SUCCESS newsletters, SUCCESS podcasts, SUCCESS plus, SUCCESS speakers bureau, and SUCCESS coaching, podcasts, and digital training courses. It operates in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, and Poland. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is based in Bellingham, Washington.