Financial Review: Altisource Portfolio Solutions (ASPS) and RE/MAX (RMAX)
Altisource Portfolio Solutions (NASDAQ: ASPS) and RE/MAX (NYSE:RMAX) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
This table compares Altisource Portfolio Solutions and RE/MAX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Altisource Portfolio Solutions||0.23%||81.23%||8.44%|
Altisource Portfolio Solutions has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, RE/MAX has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
RE/MAX pays an annual dividend of $0.72 per share and has a dividend yield of 1.5%. Altisource Portfolio Solutions does not pay a dividend. RE/MAX pays out 55.0% of its earnings in the form of a dividend. RE/MAX has raised its dividend for 3 consecutive years.
Institutional & Insider Ownership
53.6% of Altisource Portfolio Solutions shares are owned by institutional investors. 6.8% of Altisource Portfolio Solutions shares are owned by insiders. Comparatively, 0.6% of RE/MAX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Altisource Portfolio Solutions and RE/MAX’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Altisource Portfolio Solutions||$942.60 million||0.56||$28.69 million||$0.12||244.08|
|RE/MAX||$176.30 million||4.92||$22.73 million||$1.31||37.40|
Altisource Portfolio Solutions has higher revenue and earnings than RE/MAX. RE/MAX is trading at a lower price-to-earnings ratio than Altisource Portfolio Solutions, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Altisource Portfolio Solutions and RE/MAX, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altisource Portfolio Solutions||0||2||0||0||2.00|
Altisource Portfolio Solutions presently has a consensus target price of $20.50, indicating a potential downside of 30.01%. RE/MAX has a consensus target price of $61.67, indicating a potential upside of 25.85%. Given RE/MAX’s higher possible upside, analysts clearly believe RE/MAX is more favorable than Altisource Portfolio Solutions.
Altisource Portfolio Solutions Company Profile
Altisource Portfolio Solutions S.A. is a marketplace and transaction solutions provider for the real estate, mortgage and consumer debt industries. The Company’s business processes, vendor and electronic payment management software and behavioral science-based analytics manage outcomes for marketplace participants. It operates through three segments: Mortgage Services, Financial Services and Technology Services. The Mortgage Services segment provides loan servicers, originators, rental property investors and real estate consumers with products, services and technologies. The Financial Services segment provides collection services to debt originators and servicers and customer relationship management services. The Technology Services segment provides software and data analytics solutions that support management of mortgage and real estate activities and marketplace transactions across mortgage and real estate lifecycles and information technology infrastructure management services.
RE/MAX 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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