Reviewing RE/MAX (NYSE:RMAX) and Howard Hughes (NYSE:HHH)

Howard Hughes (NYSE:HHHGet Free Report) and RE/MAX (NYSE:RMAXGet Free Report) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Risk & Volatility

Howard Hughes has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, RE/MAX has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Howard Hughes and RE/MAX, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Howard Hughes 0 3 0 0 2.00
RE/MAX 1 0 1 0 2.00

Howard Hughes currently has a consensus target price of $79.00, indicating a potential upside of 23.80%. RE/MAX has a consensus target price of $13.80, indicating a potential upside of 11.65%. Given Howard Hughes’ higher possible upside, research analysts clearly believe Howard Hughes is more favorable than RE/MAX.

Profitability

This table compares Howard Hughes and RE/MAX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Howard Hughes 12.31% 7.51% 2.41%
RE/MAX -3.04% -81.65% 5.40%

Institutional & Insider Ownership

93.8% of Howard Hughes shares are held by institutional investors. Comparatively, 93.2% of RE/MAX shares are held by institutional investors. 47.7% of Howard Hughes shares are held by company insiders. Comparatively, 6.8% of RE/MAX shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Howard Hughes and RE/MAX”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Howard Hughes $1.47 billion 2.58 $123.90 million $4.94 12.92
RE/MAX $291.60 million 0.90 $8.15 million ($0.42) -29.43

Howard Hughes has higher revenue and earnings than RE/MAX. RE/MAX is trading at a lower price-to-earnings ratio than Howard Hughes, indicating that it is currently the more affordable of the two stocks.

Summary

Howard Hughes beats RE/MAX on 10 of the 13 factors compared between the two stocks.

About Howard Hughes

(Get Free Report)

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.

About RE/MAX

(Get Free Report)

RE/MAX Holdings, Inc. operates as a franchisor of real estate brokerage services in the United States, Canada, and internationally. It operates through Real Estate, Mortgage, and Marketing Funds segments. The company offers real estate brokerage franchising services under the RE/MAX brand; mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand; and mortgage loan processing software and services under the wemlo brand. It also provides kvCORE platform, which integrates a suite of digital products that enables agents, brokers, and teams to establish and manage client relationships; and RE/MAX University platform, a learning hub designed to help each agent in their professional expertise. The company was founded in 1973 and is headquartered in Denver, Colorado.

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