Head-To-Head Review: City Developments (OTCMKTS:CDEVY) & RE/MAX (NYSE:RMAX)

RE/MAX (NYSE:RMAX) and City Developments (OTCMKTS:CDEVY) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

This table compares RE/MAX and City Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RE/MAX	2.80%	-73.77%	5.20%
City Developments	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings for RE/MAX and City Developments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RE/MAX	1	1	0	0	1.50
City Developments	0	0	1	0	3.00

RE/MAX presently has a consensus price target of $9.00, indicating a potential upside of 54.67%. Given RE/MAX’s higher possible upside, equities analysts clearly believe RE/MAX is more favorable than City Developments.

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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

RE/MAX has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, City Developments has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Earnings and Valuation

This table compares RE/MAX and City Developments”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RE/MAX	$291.60 million	0.40	$8.15 million	$0.39	14.92
City Developments	$2.75 billion	2.09	$482.08 million	N/A	N/A

City Developments has higher revenue and earnings than RE/MAX.

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 City Developments

City Developments Limited (CDL) is a leading global real estate company with a network spanning 112 locations in 29 countries and regions. Listed on the Singapore Exchange, the Group is one of the largest companies by market capitalisation. Its income-stable and geographically-diverse portfolio comprises residences, offices, hotels, serviced apartments, shopping malls and integrated developments. With a proven track record of over 55 years in real estate development, investment and management, CDL has developed over 47,000 homes and owns over 23 million square feet of gross floor area in residential, commercial and hospitality assets globally. Its diversified global land bank offers 3.5 million square feet of land area.