La Rosa (NASDAQ:LRHC – Get Free Report) and AMREP (NYSE:AXR – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Insider & Institutional Ownership
7.6% of La Rosa shares are held by institutional investors. Comparatively, 59.9% of AMREP shares are held by institutional investors. 23.8% of La Rosa shares are held by company insiders. Comparatively, 37.4% of AMREP shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
La Rosa has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, AMREP has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| La Rosa | 1 | 0 | 0 | 0 | 1.00 |
| AMREP | 0 | 3 | 0 | 0 | 2.00 |
AMREP has a consensus target price of $22.00, suggesting a potential upside of 8.06%. Given AMREP’s stronger consensus rating and higher possible upside, analysts clearly believe AMREP is more favorable than La Rosa.
Valuation and Earnings
This table compares La Rosa and AMREP”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| La Rosa | $68.51 million | 0.01 | -$30.55 million | ($3,705.40) | -0.00 |
| AMREP | $52.85 million | 2.05 | $10.29 million | $1.08 | 18.85 |
AMREP has lower revenue, but higher earnings than La Rosa. La Rosa is trading at a lower price-to-earnings ratio than AMREP, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares La Rosa and AMREP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| La Rosa | -46.38% | -3,087.05% | -149.58% |
| AMREP | 14.31% | 4.21% | 4.09% |
Summary
AMREP beats La Rosa on 11 of the 13 factors compared between the two stocks.
About La Rosa
La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. The company operates through five segments: Real Estate Brokerage Services (Residential), Franchising Services, Coaching Services, Property Management, and Real Estate Brokerage Services (Commercial). It delivers coaching services to its brokers and franchisee's brokers; and franchises real estate brokerage agencies. The company also engages in the residential and commercial real estate brokerage business; and property management services to owners of single-family residential properties. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, 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.
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