Critical Review: AMREP (AXR) & Its Competitors

Volatility & Risk

AMREP has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, AMREP’s peers have a beta of -5.82, indicating that their average share price is 682% less volatile than the S&P 500.

Earnings and Valuation

This table compares AMREP and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AMREP	$51.37 million	$6.69 million	9.01
AMREP Competitors	$1.54 billion	-$113.76 million	0.26

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.

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	22.34%	10.56%	10.21%
AMREP Competitors	-293.67%	-42.84%	-0.31%

Institutional & Insider Ownership

59.9% of AMREP shares are held by institutional investors. Comparatively, 52.7% of shares of all “REAL ESTATE DEV” companies are held by institutional investors. 37.6% of AMREP shares are held by company insiders. Comparatively, 33.2% of shares of all “REAL ESTATE DEV” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

AMREP beats its peers on 8 of the 9 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.