Analyzing AMREP (NYSE:AXR) & Real REMAX Group (NASDAQ:REAX)

Real REMAX Group (NASDAQ:REAX) and AMREP (NYSE:AXR) are both small-cap real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Risk and Volatility

Real REMAX Group has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, AMREP has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Real REMAX Group and AMREP’s 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%
AMREP	14.31%	4.21%	4.09%

Valuation & Earnings

This table compares Real REMAX Group and AMREP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real REMAX Group	$2.24 billion	0.14	-$8.10 million	($0.70)	-21.22
AMREP	$52.85 million	2.11	$10.29 million	$1.08	19.38

AMREP has lower revenue, but higher earnings 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.

Insider and Institutional Ownership

53.3% of Real REMAX Group shares are owned by institutional investors. Comparatively, 59.9% of AMREP shares are owned by institutional investors. 38.2% of Real REMAX Group shares are owned by insiders. Comparatively, 37.4% of AMREP shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Real REMAX Group and AMREP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real REMAX Group	1	2	7	2	2.83
AMREP	0	3	0	0	2.00

Real REMAX Group currently has a consensus price target of $41.67, suggesting a potential upside of 180.55%. AMREP has a consensus price target of $22.00, suggesting a potential upside of 5.11%. Given Real REMAX Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Real REMAX Group is more favorable than AMREP.

Summary

AMREP beats Real REMAX Group on 9 of the 15 factors compared between the two stocks.

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.

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.