AMREP (NYSE:AXR) vs. FirstService (NASDAQ:FSV) Financial Contrast

FirstService (NASDAQ:FSV) and AMREP (NYSE:AXR) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for FirstService and AMREP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstService	0	4	8	0	2.67
AMREP	0	2	0	0	2.00

FirstService currently has a consensus target price of $184.20, indicating a potential upside of 27.82%. Given FirstService’s stronger consensus rating and higher possible upside, equities research analysts clearly believe FirstService is more favorable than AMREP.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FirstService	2.88%	18.07%	5.59%
AMREP	19.47%	7.47%	7.23%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstService	$5.50 billion	1.14	$145.05 million	$3.53	40.82
AMREP	$52.85 million	2.33	$10.29 million	$1.90	12.17

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

Volatility and Risk

FirstService has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, AMREP has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Insider and Institutional Ownership

69.3% of FirstService shares are held by institutional investors. Comparatively, 59.9% of AMREP shares are held by institutional investors. 37.4% of AMREP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

FirstService beats AMREP on 9 of the 14 factors compared between the two stocks.

About FirstService

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. It operates through two segments: FirstService Residential and FirstService Brands. The FirstService Residential segment offers services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. Its FirstService Brands segment operates and provides essential property services to residential and commercial customers through franchise networks; and company-owned operations, including California Closets, Paul Davis Restoration, and CertaPro Painters operations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, Roofing Corp of America, First Onsite property Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was incorporated in 1988 and is headquartered in Toronto, Canada.

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.