Head-To-Head Analysis: RE/MAX (NYSE:RMAX) and Henderson Land Development (OTCMKTS:HLDCY)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henderson Land Development	$2.63 billion	7.23	$807.15 million	N/A	N/A
RE/MAX	$307.68 million	0.51	$7.12 million	$0.61	12.87

Henderson Land Development has higher revenue and earnings than RE/MAX.

Institutional & Insider 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.

Analyst Ratings

This is a breakdown of current ratings for Henderson Land Development and RE/MAX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henderson Land Development	0	0	0	1	4.00
RE/MAX	1	1	0	0	1.50

RE/MAX has a consensus price target of $9.00, suggesting a potential upside of 14.68%. Given RE/MAX’s higher possible upside, analysts clearly believe RE/MAX is more favorable than Henderson Land Development.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Henderson Land Development	N/A	N/A	N/A
RE/MAX	4.27%	-61.21%	5.10%

Risk & Volatility

Henderson Land Development has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, RE/MAX has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

About Henderson Land Development

Henderson Land Development Company Limited, an investment holding company, engages in the property development and investment activities in Hong Kong and Mainland China. The company operates through Property Development, Property Leasing, Department Stores and Supermarket-Cum-Stores Operations, Hotel Room Operation, Other Businesses, and Utility and Energy segments. The Property Development segment develops and sells real estate properties. Its property portfolio primarily includes offices, shopping arcades, shopping malls, commercial complexes, and residential properties. The Property Leasing segment leases properties. The Department Stores and Supermarket-Cum-Stores Operations segment operates and manages department stores and supermarket-cum-stores. The Hotel Room Operation segment operates hotel properties. The Other Businesses segment operates and manages hotels; provides construction, finance, project management, property management, agency, and cleaning and security guard services; and trades in building materials. It also engages in food and beverage, and travel operations. The Utility and Energy segment is involved in production, distribution, and marketing gas; and water supply and environmentally friendly energy businesses. Henderson Land Development Company Limited was founded in 1976 and is based in Central, Hong Kong. Henderson Land Development Company Limited is a subsidiary of Henderson Development Limited.

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.