Head to Head Comparison: AMREP (NYSE:AXR) and Five Point (NYSE:FPH)

AMREP (NYSE:AXR) and Five Point (NYSE:FPH) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

59.9% of AMREP shares are held by institutional investors. Comparatively, 38.1% of Five Point shares are held by institutional investors. 37.2% of AMREP shares are held by insiders. Comparatively, 21.5% of Five Point shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

AMREP has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Five Point has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for AMREP and Five Point, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMREP	0	1	0	0	2.00
Five Point	0	0	2	0	3.00

Profitability

This table compares AMREP and Five Point’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMREP	22.86%	7.98%	7.73%
Five Point	48.56%	4.24%	2.99%

Valuation & Earnings

This table compares AMREP and Five Point”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMREP	$49.69 million	2.25	$12.72 million	$1.95	10.81
Five Point	$237.93 million	3.48	$68.30 million	$1.30	4.33

Five Point has higher revenue and earnings than AMREP. Five Point is trading at a lower price-to-earnings ratio than AMREP, indicating that it is currently the more affordable of the two stocks.

Summary

AMREP beats Five Point on 7 of the 13 factors compared between the two stocks.

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.

About Five Point

Five Point Holdings, LLC, through its subsidiary, Five Point Operating Company, LP, owns and develops mixed-use and planned communities in Orange County, Los Angeles County, and San Francisco County. The company operates in four segments: Valencia, San Francisco, Great Park, and Commercial. It sells residential and commercial land sites to homebuilders, commercial developers, and commercial buyers; operates and owns a commercial office, research and development, medical campus, and other properties; and provides development and property management services. The company was formerly known as Newhall Holding Company, LLC and changed its name to Five Point Holdings, LLC in May 2016. Five Point Holdings, LLC was incorporated in 2009 and is headquartered in Irvine, California.