RE/MAX (NYSE:RMAX – Get Free Report) and Legacy Housing (NASDAQ:LEGH – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Valuation & Earnings
This table compares RE/MAX and Legacy Housing”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RE/MAX | $291.60 million | 0.70 | $8.15 million | $0.01 | 960.20 |
| Legacy Housing | $164.57 million | 3.57 | $41.81 million | $1.78 | 13.87 |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for RE/MAX and Legacy Housing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RE/MAX | 1 | 0 | 1 | 0 | 2.00 |
| Legacy Housing | 0 | 4 | 0 | 0 | 2.00 |
RE/MAX presently has a consensus price target of $13.80, suggesting a potential upside of 43.72%. Legacy Housing has a consensus price target of $21.00, suggesting a potential downside of 14.95%. Given RE/MAX’s higher possible upside, analysts clearly believe RE/MAX is more favorable than Legacy Housing.
Volatility & Risk
RE/MAX has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Legacy Housing has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Profitability
This table compares RE/MAX and Legacy Housing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RE/MAX | 0.13% | -90.29% | 5.82% |
| Legacy Housing | 26.01% | 8.08% | 7.44% |
Insider & Institutional Ownership
93.2% of RE/MAX shares are held by institutional investors. Comparatively, 89.4% of Legacy Housing shares are held by institutional investors. 6.8% of RE/MAX shares are held by insiders. Comparatively, 30.1% of Legacy Housing shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Legacy Housing beats RE/MAX on 7 of the 13 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 Legacy Housing
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.
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