Real REMAX Group (NASDAQ:REAX – Get Free Report) and Alset (NASDAQ:AEI – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.
Insider and Institutional Ownership
53.3% of Real REMAX Group shares are held by institutional investors. Comparatively, 2.7% of Alset shares are held by institutional investors. 38.2% of Real REMAX Group shares are held by insiders. Comparatively, 90.5% of Alset shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations for Real REMAX Group and Alset, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Real REMAX Group | 1 | 2 | 7 | 2 | 2.83 |
| Alset | 1 | 0 | 0 | 0 | 1.00 |
Real REMAX Group presently has a consensus target price of $37.62, indicating a potential upside of 224.49%. Given Real REMAX Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Real REMAX Group is more favorable than Alset.
Valuation & Earnings
This table compares Real REMAX Group and Alset”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Real REMAX Group | $1.97 billion | 0.13 | -$8.10 million | ($2.95) | -3.93 |
| Alset | $4.47 million | 4.26 | -$47.42 million | ($1.62) | -0.30 |
Real REMAX Group has higher revenue and earnings than Alset. Real REMAX Group is trading at a lower price-to-earnings ratio than Alset, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Real REMAX Group and Alset’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Real REMAX Group | -0.72% | -25.32% | -9.83% |
| Alset | -951.44% | -29.90% | -28.92% |
Risk and Volatility
Real REMAX Group has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Alset has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.
Summary
Real REMAX Group beats Alset on 10 of the 15 factors compared between the two stocks.
About Real REMAX Group
Real Brokerage Inc. is a technology-powered residential real estate brokerage serving real estate agents and their clients in the United States and Canada. The company operates through a cloud-based model that enables agents to manage their businesses remotely while providing brokerage services for home buyers and sellers. Real’s platform is designed to support key aspects of the real estate transaction process, including lead management, transaction coordination, document management, communication and collaboration.
About Alset
Alset Inc. is a diversified holding company that develops and manages businesses across real estate, healthcare, biotechnology, consumer products and financial services. The company operates through subsidiaries and strategic investments, with an emphasis on building businesses that can support its broader portfolio. Real estate is a central part of Alset’s activities. Through its real estate subsidiaries, the company has pursued residential and commercial development, property management and related services.
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