Financial Analysis: Active Power (OTCMKTS:PIOE) vs. RE/MAX (NYSE:RMAX)

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

Earnings & Valuation

This table compares RE/MAX and Active Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RE/MAX	$307.68 million	0.53	$7.12 million	$0.61	13.39
Active Power	N/A	N/A	N/A	N/A	N/A

RE/MAX has higher revenue and earnings than Active Power.

Institutional and Insider Ownership

93.2% of RE/MAX shares are owned by institutional investors. 6.8% of RE/MAX shares are owned by company insiders. Comparatively, 20.0% of Active Power shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for RE/MAX and Active Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RE/MAX	1	1	0	0	1.50
Active Power	0	0	0	0	0.00

RE/MAX presently has a consensus target price of $9.00, suggesting a potential upside of 10.23%. Given RE/MAX’s stronger consensus rating and higher probable upside, equities analysts clearly believe RE/MAX is more favorable than Active Power.

Profitability

This table compares RE/MAX and Active Power’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%
Active Power	N/A	N/A	N/A

Summary

RE/MAX beats Active Power on 6 of the 8 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 Active Power

P10 Holdings, Inc. is an alternative asset management investment firm. The firm’s purpose is to create long-term value by providing risk-adjusted returns through private equity funds-of-funds, secondary funds, and co-investment funds. It focusses on long-term value creation in opportunities where it sees significant potential for sustainable profit growth. The company was founded by Joseph F. Pinkerton in 1992 and is headquartered in Dallas, TX.