Head-To-Head Analysis: Vonovia (OTCMKTS:VONOY) versus RE/MAX (NYSE:RMAX)

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

Volatility and Risk

RE/MAX has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Vonovia has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Dividends

RE/MAX pays an annual dividend of $0.69 per share and has a dividend yield of 8.3%. Vonovia pays an annual dividend of $0.66 per share and has a dividend yield of 4.5%. RE/MAX pays out 113.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vonovia pays out 24.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for RE/MAX and Vonovia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RE/MAX	1	1	0	0	1.50
Vonovia	0	0	1	0	3.00

RE/MAX presently has a consensus target price of $9.00, suggesting a potential upside of 8.50%. Given RE/MAX’s higher probable upside, analysts clearly believe RE/MAX is more favorable than Vonovia.

Valuation and Earnings

This table compares RE/MAX and Vonovia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RE/MAX	$292.93 million	0.57	$7.12 million	$0.61	13.60
Vonovia	$5.51 billion	4.42	-$969.56 million	$2.70	5.40

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RE/MAX	4.27%	-61.21%	5.10%
Vonovia	39.42%	12.34%	3.98%

Insider and Institutional Ownership

93.2% of RE/MAX shares are held by institutional investors. 6.8% of RE/MAX shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Vonovia beats RE/MAX on 9 of the 16 factors compared between the two stocks.

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.

About Vonovia

Vonovia SE operates as an integrated residential real estate company in Europe. It operates through four segments: Rental, Value-Add, Recurring Sales, and Development. The company offers property management services; property-related services; and value-added services, including maintenance and modernization of residential properties, craftsmen and residential environment organization, condominium administration, cable TV, metering, energy supply, and insurances services. It also engages in the sale of individual condominiums and single-family houses; and project development activities. The company was formerly known as Deutsche Annington Immobilien SE and changed its name to Vonovia SE in August 2015. Vonovia SE was founded in 1998 and is headquartered in Bochum, Germany.