RE/MAX (NYSE:RMAX) vs. Hammerson (OTCMKTS:HMSNF) Critical Analysis

RE/MAX (NYSE:RMAX) and Hammerson (OTCMKTS:HMSNF) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for RE/MAX and Hammerson, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RE/MAX	1	0	1	0	2.00
Hammerson	0	3	1	0	2.25

RE/MAX currently has a consensus target price of $13.80, suggesting a potential upside of 23.96%. Given RE/MAX’s higher probable upside, equities research analysts clearly believe RE/MAX is more favorable than Hammerson.

Profitability

This table compares RE/MAX and Hammerson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RE/MAX	2.80%	-73.77%	5.20%
Hammerson	N/A	N/A	N/A

Valuation & Earnings

This table compares RE/MAX and Hammerson”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RE/MAX	$291.60 million	0.77	$8.15 million	$0.39	28.55
Hammerson	$278.73 million	8.20	$306.07 million	N/A	N/A

Hammerson has lower revenue, but higher earnings than RE/MAX.

Volatility and Risk

RE/MAX has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Hammerson has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Insider and Institutional 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

RE/MAX beats Hammerson on 7 of the 11 factors compared between the two stocks.

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.

About Hammerson

Hammerson is a cities business. An owner, operator and developer of prime urban real estate, with a portfolio value of £4.7billion (as at 30 June 2023), in some of the fastest growing cities in the UK, Ireland and France. Our portfolio and adjacent lands leverage our experience and capabilities to create and manage exceptional city centre destinations with the opportunity to drive value and reshape entire neighbourhoods. Our assets are high profile and play an important role in our communities, welcoming c. 175 million visitors each year and supporting 20,000+ jobs though our retail, dining and social occupiers. These destinations include Bullring in Birmingham, The Oracle in Reading, Dundrum Estate, Dublin and Terraces du Port in Marseille. We also hold investments in Value Retail, best-in-class villages such as Bicester Village, Oxfordshire. Hammerson also holds 80 acres of attractive pre-development and strategic land. This includes complementary adjacent land, creating optionality to enhance both the scale and diversity of the existing estate, and stand-alone land opportunities. These include Martineau Galleries in Birmingham and Bishopsgate Goodsyard, Shoreditch.