RE/MAX Holdings (NYSE: RMAX) and Colliers International Group (NASDAQ:CIGI) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Valuation and Earnings
This table compares RE/MAX Holdings and Colliers International Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RE/MAX Holdings||$187.03 million||5.74||$95.88 million||$1.31||46.34|
|Colliers International Group||$2.01 billion||0.93||$209.86 million||$1.66||28.95|
Colliers International Group has higher revenue and earnings than RE/MAX Holdings. Colliers International Group is trading at a lower price-to-earnings ratio than RE/MAX Holdings, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
RE/MAX Holdings has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Colliers International Group has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.
RE/MAX Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Colliers International Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. RE/MAX Holdings pays out 55.0% of its earnings in the form of a dividend. Colliers International Group pays out 6.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Colliers International Group has raised its dividend for 2 consecutive years.
This table compares RE/MAX Holdings and Colliers International Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Colliers International Group||3.23%||49.70%||8.55%|
This is a breakdown of current recommendations for RE/MAX Holdings and Colliers International Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Colliers International Group||0||0||6||0||3.00|
RE/MAX Holdings presently has a consensus price target of $62.50, suggesting a potential upside of 2.97%. Colliers International Group has a consensus price target of $68.88, suggesting a potential upside of 43.34%. Given Colliers International Group’s stronger consensus rating and higher possible upside, analysts clearly believe Colliers International Group is more favorable than RE/MAX Holdings.
Insider & Institutional Ownership
63.5% of Colliers International Group shares are held by institutional investors. 0.6% of RE/MAX Holdings shares are held by insiders. Comparatively, 15.3% of Colliers International Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Colliers International Group beats RE/MAX Holdings on 11 of the 17 factors compared between the two stocks.
RE/MAX Holdings 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.
Colliers International Group Company Profile
Colliers International Group Inc. is engaged in the provision of commercial real estate services. The Company offers services, including outsourcing and advisory services, lease brokerage and sales brokerage. Its segments include Americas; Europe, Middle East and Africa (EMEA); Asia Pacific, and Corporate. It is engaged in the transaction brokerage business, which provides services in sales and leasing for commercial clients. The Sales and Lease Brokerage Division executes transactions across a client base, including corporations, financial institutions, governments and individuals. It provides services for sales, leases and mortgages in various areas, such as landlord representation, tenant representation, and capital markets and investment services. The Outsourcing and Advisory Services Division provides appraisal and valuation services; facility, property and asset management services; project management services, and research for commercial real estate clients.
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