Analyzing Real REMAX Group (NASDAQ:REAX) & Howard Hughes (NYSE:HHH)

Real REMAX Group (NASDAQ:REAX) and Howard Hughes (NYSE:HHH) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Volatility & Risk

Real REMAX Group has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Howard Hughes has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Insider and Institutional Ownership

53.3% of Real REMAX Group shares are held by institutional investors. Comparatively, 93.8% of Howard Hughes shares are held by institutional investors. 38.2% of Real REMAX Group shares are held by company insiders. Comparatively, 47.7% of Howard Hughes shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Real REMAX Group and Howard Hughes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real REMAX Group	1	1	8	2	2.92
Howard Hughes	0	2	1	1	2.75

Real REMAX Group currently has a consensus price target of $47.14, suggesting a potential upside of 175.05%. Howard Hughes has a consensus price target of $81.00, suggesting a potential upside of 16.81%. Given Real REMAX Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Real REMAX Group is more favorable than Howard Hughes.

Profitability

This table compares Real REMAX Group and Howard Hughes’ 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%
Howard Hughes	12.31%	7.51%	2.41%

Earnings and Valuation

This table compares Real REMAX Group and Howard Hughes”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real REMAX Group	$1.97 billion	0.19	-$8.10 million	($0.70)	-24.49
Howard Hughes	$1.47 billion	2.81	$123.90 million	$4.94	14.04

Howard Hughes has lower revenue, but higher earnings than Real REMAX Group. Real REMAX Group is trading at a lower price-to-earnings ratio than Howard Hughes, indicating that it is currently the more affordable of the two stocks.

Summary

Howard Hughes beats Real REMAX Group on 10 of the 15 factors compared between the two stocks.

About Real REMAX Group

The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.

About Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.