Head-To-Head Survey: RE/MAX (NYSE:RMAX) and Lendlease Group (OTCMKTS:LLESY)

Lendlease Group (OTCMKTS:LLESY) and RE/MAX (NYSE:RMAX) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Dividends

Lendlease Group pays an annual dividend of $0.06 per share and has a dividend yield of 2.7%. RE/MAX pays an annual dividend of $0.69 per share and has a dividend yield of 6.1%. Lendlease Group pays out 4.0% of its earnings in the form of a dividend. RE/MAX pays out -164.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RE/MAX is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Lendlease Group and RE/MAX”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lendlease Group	N/A	N/A	N/A	$1.51	1.46
RE/MAX	$283.12 million	0.85	$8.15 million	($0.42)	-27.05

RE/MAX has higher revenue and earnings than Lendlease Group. RE/MAX is trading at a lower price-to-earnings ratio than Lendlease Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Lendlease Group and RE/MAX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendlease Group	0	1	0	0	2.00
RE/MAX	1	0	1	0	2.00

RE/MAX has a consensus target price of $13.80, indicating a potential upside of 21.48%. Given RE/MAX’s higher possible upside, analysts plainly believe RE/MAX is more favorable than Lendlease Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lendlease Group	N/A	N/A	N/A
RE/MAX	-3.04%	-81.65%	5.40%

Institutional & Insider Ownership

0.1% of Lendlease Group shares are owned by institutional investors. Comparatively, 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 will outperform the market over the long term.

Summary

RE/MAX beats Lendlease Group on 8 of the 12 factors compared between the two stocks.

About Lendlease Group

Lendlease Group operates as an integrated real estate and investment company in Australia, Asia, Europe, and the Americas. It operates through Development, Construction, and Investments segments. The Development segment develops inner-city mixed-use developments, apartments, communities, retirement, retail, commercial assets, and social and economic infrastructure. The Construction segment provides project management, design, and construction services primarily in the commercial, residential, mixed use, defense, and social infrastructure sectors. The Investments segment owns and/or manages investments, including property and infrastructure co-investments, retirement livings, and the U.S. military housings. The company was founded in 1958 and is headquartered in Barangaroo, Australia.

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.