Head-To-Head Comparison: Exp World (NASDAQ:AGNT) versus Daiwa House Industry (OTCMKTS:DWAHY)

Daiwa House Industry (OTCMKTS:DWAHY) and Exp World (NASDAQ:AGNT) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Volatility & Risk

Daiwa House Industry has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Exp World has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500.

Profitability

This table compares Daiwa House Industry and Exp World’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daiwa House Industry	N/A	N/A	N/A
Exp World	-0.35%	-5.43%	-2.89%

Insider & Institutional Ownership

0.1% of Daiwa House Industry shares are held by institutional investors. Comparatively, 27.2% of Exp World shares are held by institutional investors. 26.6% of Exp World shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Daiwa House Industry and Exp World, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daiwa House Industry	0	0	0	0	0.00
Exp World	3	1	1	0	1.60

Exp World has a consensus price target of $5.17, indicating a potential upside of 20.16%. Given Exp World’s stronger consensus rating and higher probable upside, analysts plainly believe Exp World is more favorable than Daiwa House Industry.

Valuation and Earnings

This table compares Daiwa House Industry and Exp World”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daiwa House Industry	N/A	N/A	N/A	$3.72	7.70
Exp World	$4.77 billion	0.15	-$22.71 million	($0.11)	-39.09

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

Dividends

Daiwa House Industry pays an annual dividend of $0.82 per share and has a dividend yield of 2.9%. Exp World pays an annual dividend of $0.20 per share and has a dividend yield of 4.7%. Daiwa House Industry pays out 22.0% of its earnings in the form of a dividend. Exp World pays out -181.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Exp World has raised its dividend for 3 consecutive years. Exp World is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Exp World beats Daiwa House Industry on 10 of the 15 factors compared between the two stocks.

About Daiwa House Industry

Daiwa House Industry Co., Ltd. engages in the construction contracts business in Japan and internationally. It operates through six segments: Detached Houses, Rental Housing, Condominiums, Commercial Facilities, Business Facilities, and Environmental Energy. The Detached Houses segment engages in custom-ordered housing and sales of detached houses and lots. The Rental Housing segment develops, constructs, manages, operates, and brokers rental housing. The Condominiums segment develops, sells, and manages condominiums. The Commercial Facilities segment engages in the development, construction, management, and operation of commercial facilities. The Business Facilities segment engages in the development, construction, management, and operation of logistics and manufacturing facilities, medical and nursing care facilities, and other facilities. The Environmental Energy segment engages in the development and construction of renewable energy power plants, renewable energy power generation, and electricity retail business. The company also engages in the tourism golf business; resort hotel business; urban hotel facilities; logistics warehouse rentals; and fitness club, insurance, sports club management, credit card businesses. Daiwa House Industry Co., Ltd. was incorporated in 1947 and is headquartered in Osaka, Japan.

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.