RE/MAX (NYSE:RMAX – Get Free Report) and Next (OTCMKTS:NXCLF – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Institutional & Insider Ownership
93.2% of RE/MAX shares are held by institutional investors. 6.8% of RE/MAX shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares RE/MAX and Next’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RE/MAX | 3.19% | -51.38% | 4.88% |
| Next | -12.95% | -29.38% | -17.67% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RE/MAX | 0 | 1 | 0 | 0 | 2.00 |
| Next | 0 | 0 | 0 | 0 | 0.00 |
RE/MAX currently has a consensus price target of $9.00, suggesting a potential downside of 4.61%. Given RE/MAX’s stronger consensus rating and higher probable upside, research analysts clearly believe RE/MAX is more favorable than Next.
Earnings & Valuation
This table compares RE/MAX and Next”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RE/MAX | $307.68 million | 0.61 | $7.12 million | $0.47 | 20.07 |
| Next | $231.65 million | 0.69 | -$56.69 million | ($0.21) | -5.95 |
RE/MAX has higher revenue and earnings than Next. Next is trading at a lower price-to-earnings ratio than RE/MAX, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
RE/MAX has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Next has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500.
Summary
RE/MAX beats Next on 11 of the 13 factors compared between the two stocks.
About RE/MAX
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.
About Next
LIFULL Co.,Ltd. provides real estate information services in Japan and internationally. It offers LIFULL HOME'S, a site of real estate and housing information; LIFULL Revitalize Rural Japan that suggests new lifestyles to people in Japan based on the refurbishment of abandoned houses; LIFULL Move, which provides rankings and reviews of moving companies; LIFULL Nursing Care, a special care facility searching web service; and LIFULL Investment, a money lending website. The company also provides LIFULL FaM that enables working mothers balance childcare with work while pursuing a career; LIFULL Storage, a storage space searching web service; LIFULL HUB, a shared office; LIFULL Fab for design and craftsmanship; and LIFULL Table, a gallery and open space for photography, exhibitions, press releases, and workshops. In addition, it offers LivingAnywhere Commons, a community to live; instant house products; Trovit, an aggregation website providing information on items, including real estate and housing, used cars, recruitment, and mail orders; and Mitula, a site that provides information in real estate and housing, used cars, recruitment, and fashion. The company was formerly known as NEXT Co., Ltd. and changed its name to LIFULL Co.,Ltd. in April 2017. LIFULL Co.,Ltd. was founded in 1995 and is headquartered in Tokyo, Japan.
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