Lsl Property (OTCMKTS:LSLPF) vs. RE/MAX (NYSE:RMAX) Financial Analysis

RE/MAX (NYSE:RMAX) and Lsl Property (OTCMKTS:LSLPF) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for RE/MAX and Lsl Property, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RE/MAX	1	1	0	0	1.50
Lsl Property	0	0	1	0	3.00

RE/MAX currently has a consensus price target of $9.00, indicating a potential upside of 20.24%. Given RE/MAX’s higher probable upside, research analysts clearly believe RE/MAX is more favorable than Lsl Property.

Volatility & Risk

RE/MAX has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Lsl Property has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares RE/MAX and Lsl Property’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RE/MAX	4.27%	-61.21%	5.10%
Lsl Property	N/A	N/A	N/A

Earnings and Valuation

This table compares RE/MAX and Lsl Property”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RE/MAX	$307.68 million	0.49	$7.12 million	$0.61	12.27
Lsl Property	N/A	N/A	N/A	N/A	N/A

RE/MAX has higher revenue and earnings than Lsl Property.

Insider & Institutional Ownership

93.2% of RE/MAX shares are owned by institutional investors. 6.8% of RE/MAX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

RE/MAX beats Lsl Property on 7 of the 10 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 Lsl Property

LSL Property Services plc, together with its subsidiaries, engages in the provision of business-to-business services to mortgage intermediaries and estate agency franchisees, and valuation services to lenders in the United Kingdom. The company operates through three segments: Financial Services, Surveying & Valuation, and Estate Agency Franchising. The Financial Services segment offers compliance and other services to mortgage and insurance networks. The Surveying & Valuation segment provides valuations and professional surveying services of residential properties to various lenders and individual customers; data services to lenders; and asset management services, including managing the sale of residential properties on behalf of corporate clients and property investors. The Estate Agency Franchising segment offers brand marketing, and commercial and information technology support services under brands, including Your Move and Reeds Rains, as well as various local brands; repossession services; and conveyancing panel management and support services to its franchisees and their customers. It also offers business and domestic software development; and conveyancing packaging services. The company was incorporated in 2004 and is based in Newcastle upon Tyne, the United Kingdom.