Head to Head Analysis: AMREP (AXR) versus Its Peers

AMREP (NYSE:AXR) is one of 329 public companies in the “Real Estate Management & Development” industry, but how does it weigh in compared to its peers? We will compare AMREP to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares AMREP and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMREP	14.31%	4.21%	4.09%
AMREP Competitors	-263.80%	-682.73%	-1.07%

Analyst Recommendations

This is a summary of current recommendations and price targets for AMREP and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMREP	0	3	0	0	2.00
AMREP Competitors	1579	4684	7440	207	2.45

AMREP presently has a consensus price target of $22.00, indicating a potential upside of 5.89%. As a group, “Real Estate Management & Development” companies have a potential upside of 21.82%. Given AMREP’s peers stronger consensus rating and higher possible upside, analysts plainly believe AMREP has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares AMREP and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AMREP	$52.85 million	$10.29 million	19.24
AMREP Competitors	$6.71 billion	-$400.32 million	9.94

AMREP’s peers have higher revenue, but lower earnings than AMREP. AMREP is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

59.9% of AMREP shares are held by institutional investors. Comparatively, 32.5% of shares of all “Real Estate Management & Development” companies are held by institutional investors. 37.4% of AMREP shares are held by company insiders. Comparatively, 27.1% of shares of all “Real Estate Management & Development” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

AMREP has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, AMREP’s peers have a beta of -0.22, meaning that their average stock price is 122% less volatile than the S&P 500.

Summary

AMREP beats its peers on 8 of the 13 factors compared.

About AMREP

AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.