RE/MAX (NYSE:RMAX) & Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY) Financial Review

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd (OTCMKTS:SIHBY) and RE/MAX (NYSE:RMAX) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and RE/MAX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	0	0	0	0	0.00
RE/MAX	1	1	0	0	1.50

RE/MAX has a consensus price target of $9.00, indicating a potential upside of 49.85%. Given RE/MAX’s stronger consensus rating and higher possible upside, analysts clearly believe RE/MAX is more favorable than Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd.

Insider & Institutional Ownership

93.2% of RE/MAX shares are owned by institutional investors. 6.8% of RE/MAX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, RE/MAX has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and RE/MAX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	N/A	N/A	N/A
RE/MAX	2.80%	-73.77%	5.20%

Valuation and Earnings

This table compares Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd and RE/MAX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd	$133.50 million	5.47	$74.68 million	N/A	N/A
RE/MAX	$291.60 million	0.41	$8.15 million	$0.39	15.40

Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd has higher earnings, but lower revenue than RE/MAX.

Summary

RE/MAX beats Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd on 8 of the 11 factors compared between the two stocks.

About Shenzhen Investment Hldgs Bay Area Dvlpmt Co. Ltd. Sponsrd

Shenzhen Investment Holdings Bay Area Development Company Limited, an investment holding company, initiates, promotes, develops, and operates toll expressways and bridges in the People’s Republic of China. The company operates through Coastal Expressway (Shenzhen Section), GS Superhighway, GZ West Superhighway, and Xintang Interchange segments. It also operates toll expressway projects comprising Guangzhou-Shenzhen superhighway and Guangzhou-Zhuhai West superhighway. In addition, the company is involved in the land development and utilization project activities. The company was formerly known as Hopewell Highway Infrastructure Limited. Shenzhen Investment Holdings Bay Area Development Company Limited was incorporated in 2003 and is based in Wan Chai, Hong Kong. The company is a subsidiary of Shenzhen Investment International Capital Holdings Infrastructure Co., Ltd.

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.