RE/MAX Holdings (NYSE: RMAX) and American Farmland (NASDAQ:AFCO) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for RE/MAX Holdings and American Farmland, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RE/MAX Holdings 2 3 2 0 2.00
American Farmland 0 0 0 0 N/A

RE/MAX Holdings currently has a consensus target price of $63.80, indicating a potential downside of 0.55%. Given RE/MAX Holdings’ higher probable upside, equities research analysts plainly believe RE/MAX Holdings is more favorable than American Farmland.

Profitability

This table compares RE/MAX Holdings and American Farmland’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RE/MAX Holdings 12.45% 79.94% 11.81%
American Farmland 12.35% 1.47% 0.94%

Dividends

RE/MAX Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. American Farmland does not pay a dividend. RE/MAX Holdings pays out 55.0% of its earnings in the form of a dividend. RE/MAX Holdings has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares RE/MAX Holdings and American Farmland’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RE/MAX Holdings $187.03 million 6.07 $95.88 million $1.31 48.97
American Farmland N/A N/A N/A N/A N/A

RE/MAX Holdings has higher revenue and earnings than American Farmland.

Summary

RE/MAX Holdings beats American Farmland on 8 of the 9 factors compared between the two stocks.

About RE/MAX Holdings

RE/MAX Holdings, Inc. is a franchisor in the real estate industry, franchising real estate brokerages around the world under the RE/MAX brand and mortgage brokerages within the United States under the Motto Mortgage brand. The Company is a franchised business, with all of the RE/MAX branded brokerage office locations being operated by franchisees, including RE/MAX, LLC, which owns the RE/MAX brand, and sells franchises and franchising rights; Independent Regional Franchise Owner, which owns rights to sell brokerage franchises in a specified region; Franchisee (or Broker-Owner), which operates a RE/MAX-branded brokerage office, lists properties and recruits agents, and Agent (or Sales Associate), including branded independent contractors operating out of local franchise brokerage offices. Under Motto business, the Company operates as a mortgage brokerage franchisor. As a franchisor, the Company helps its Motto franchisees to establish independent mortgage brokerage companies.

About American Farmland

American Farmland Company is an internally managed real estate company. The Company owns a portfolio of farmland, consisting of mature permanent, specialty/vegetable row and commodity row crop farms, including farmland in development, located in select major agricultural regions in the United States. It operates through four segments: Permanent Crop, Specialty/Vegetable Row Crop, Commodity Row Crop and Development. Permanent Crop consists of its Kimberly Vineyard, Golden Eagle Ranch, Quail Run Vineyard, Blue Heron Farms, Falcon Farms and Kingfisher Ranch properties. Specialty/Vegetable Row Crop consists of its Sandpiper Ranch and Sweetwater Farm properties. Commodity Row Crop consists of its Pleasant Plains Farm, Macomb Farm, Kane County Farms and Tillar Farm. Development consists of its Blue Cypress Farm, Roadrunner Ranch, Condor Ranch (of which over 68 mature acres are subject to participating leases), Grassy Island Groves, Pintail Vineyards and Hawk Creek Ranch properties.

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