Jones Lang LaSalle (NYSE: JLL) and RE/MAX Holdings (NYSE:RMAX) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
Valuation and Earnings
This table compares Jones Lang LaSalle and RE/MAX Holdings’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Jones Lang LaSalle||$7.31 billion||0.81||$651.60 million||$6.62||19.77|
|RE/MAX Holdings||$187.03 million||6.22||$95.88 million||$1.31||50.15|
Jones Lang LaSalle has higher revenue and earnings than RE/MAX Holdings. Jones Lang LaSalle is trading at a lower price-to-earnings ratio than RE/MAX Holdings, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
90.3% of Jones Lang LaSalle shares are held by institutional investors. 0.7% of Jones Lang LaSalle shares are held by company insiders. Comparatively, 0.6% of RE/MAX Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent recommendations and price targets for Jones Lang LaSalle and RE/MAX Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jones Lang LaSalle||0||2||4||0||2.67|
Jones Lang LaSalle currently has a consensus price target of $131.80, suggesting a potential upside of 0.72%. RE/MAX Holdings has a consensus price target of $63.80, suggesting a potential downside of 2.89%. Given Jones Lang LaSalle’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Jones Lang LaSalle is more favorable than RE/MAX Holdings.
Jones Lang LaSalle pays an annual dividend of $0.70 per share and has a dividend yield of 0.5%. RE/MAX Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Jones Lang LaSalle pays out 10.6% of its earnings in the form of a dividend. RE/MAX Holdings pays out 55.0% 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. Jones Lang LaSalle has raised its dividend for 6 consecutive years and RE/MAX Holdings has raised its dividend for 2 consecutive years.
This table compares Jones Lang LaSalle and RE/MAX Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jones Lang LaSalle||4.14%||12.04%||4.67%|
Risk and Volatility
Jones Lang LaSalle has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, RE/MAX Holdings has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Jones Lang LaSalle beats RE/MAX Holdings on 11 of the 17 factors compared between the two stocks.
Jones Lang LaSalle Company Profile
Jones Lang LaSalle Incorporated (JLL) is a financial and professional services company specializing in real estate. The Company operates through four business segments: Americas; Europe, Middle East and Africa (EMEA); Asia Pacific, and LaSalle. It offers integrated services on a local, regional and global basis to owner, occupier, investor and developer clients. It delivers various real estate services (RES) across three geographic business segments: the Americas, EMEA and Asia Pacific. Its RES is organized into five product categories: leasing; capital markets and hotels; property and facility management; project and development services, and advisory, consulting and other services. LaSalle offers clients with real estate investment products and services, such as private investments in multiple real estate property types, including office, industrial, healthcare and multifamily residential. LaSalle enables clients to invest in separate accounts focused on public real estate equities.
RE/MAX Holdings Company Profile
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.
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