Head to Head Review: RE/MAX (NYSE:RMAX) and Lendlease Group (OTCMKTS:LLESY)

Lendlease Group (OTCMKTS:LLESY) and RE/MAX (NYSE:RMAX) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Valuation & Earnings

This table compares Lendlease Group and RE/MAX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lendlease Group	N/A	N/A	N/A	$1.51	1.26
RE/MAX	$291.60 million	0.71	$8.15 million	$0.01	970.80

RE/MAX has higher revenue and earnings than Lendlease Group. Lendlease Group is trading at a lower price-to-earnings ratio than RE/MAX, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.1% of Lendlease Group shares are owned by institutional investors. Comparatively, 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Lendlease Group and RE/MAX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendlease Group	0	1	0	0	2.00
RE/MAX	1	0	1	0	2.00

RE/MAX has a consensus price target of $13.80, indicating a potential upside of 42.15%. Given RE/MAX’s higher probable upside, analysts clearly believe RE/MAX is more favorable than Lendlease Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lendlease Group	N/A	N/A	N/A
RE/MAX	0.13%	-90.29%	5.82%

Summary

RE/MAX beats Lendlease Group on 8 of the 10 factors compared between the two stocks.

About Lendlease Group

Lendlease Group operates as an integrated real estate and investment company in Australia, Asia, Europe, and the Americas. It operates through Development, Construction, and Investments segments. The Development segment develops inner-city mixed-use developments, apartments, communities, retirement, retail, commercial assets, and social and economic infrastructure. The Construction segment provides project management, design, and construction services primarily in the commercial, residential, mixed use, defense, and social infrastructure sectors. The Investments segment owns and/or manages investments, including property and infrastructure co-investments, retirement livings, and the U.S. military housings. The company was founded in 1958 and is headquartered in Barangaroo, Australia.

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.