Contrasting RE/MAX (NYSE:RMAX) & Sun Hung Kai Properties (OTCMKTS:SUHJY)

Sun Hung Kai Properties (OTCMKTS:SUHJY) and RE/MAX (NYSE:RMAX) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

Sun Hung Kai Properties has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, RE/MAX has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Sun Hung Kai Properties and RE/MAX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Hung Kai Properties	0	2	1	0	2.33
RE/MAX	1	0	1	0	2.00

RE/MAX has a consensus target price of $13.80, indicating a potential upside of 27.67%. Given RE/MAX’s higher possible upside, analysts plainly believe RE/MAX is more favorable than Sun Hung Kai Properties.

Profitability

This table compares Sun Hung Kai Properties and RE/MAX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sun Hung Kai Properties	N/A	N/A	N/A
RE/MAX	2.80%	-73.77%	5.20%

Institutional and Insider Ownership

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

Valuation & Earnings

This table compares Sun Hung Kai Properties and RE/MAX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sun Hung Kai Properties	$10.23 billion	4.98	$2.48 billion	N/A	N/A
RE/MAX	$291.60 million	0.75	$8.15 million	$0.39	27.72

Sun Hung Kai Properties has higher revenue and earnings than RE/MAX.

Summary

RE/MAX beats Sun Hung Kai Properties on 6 of the 11 factors compared between the two stocks.

About Sun Hung Kai Properties

Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, and internationally. It develops, sells, and leases properties, including residential estates, offices, shopping malls, industrial offices, and hotels and serviced suites. The company also provides property management services; construction-related services, including landscaping, electrical and mechanical installation, production and installation of wooden doors, and construction plant and machinery leasing; and insurance products to individuals and businesses comprising householder’s comprehensive, fire, employees’ compensation, travel, personal accident, motor vehicles, contractors’ all risks, third party liability, and property all risks. In addition, the company offers voice, multimedia, and mobile broadband services; and data center services, including infrastructure, facility management, server co-location, and other value-added services. Further, it manages car parks, tunnels, and toll roads; facilities management and value-added services; general insurance; offers transport facilities for private and the public sectors; operates an expressway; provides public bus services; and offers airport freight forwarding and aviation support services. Additionally, the company provides container handling and storage, container freight station, and other port-related services; operates department stores and supermarkets; and offers mortgage and other loan financing facilities, as well as offers asset and project management, architectural and engineering, cleaning, and secretarial services. It also engages in the club and road management business. The company was formerly known as Sun Hung Kai (Holdings) Limited and changed its name to Sun Hung Kai Properties Limited in March 1973. The company was incorporated in 1972 and is based in Wan Chai, Hong Kong.

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.