Critical Survey: Cyrela Brazil Realty (OTCMKTS:CYRBY) & Exp World (NASDAQ:AGNT)

Cyrela Brazil Realty (OTCMKTS:CYRBY) and Exp World (NASDAQ:AGNT) are both small-cap real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Insider & Institutional Ownership

27.2% of Exp World shares are held by institutional investors. 26.6% of Exp World shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Cyrela Brazil Realty and Exp World”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyrela Brazil Realty	$1.69 billion	1.12	$359.41 million	$0.94	5.21
Exp World	$4.77 billion	0.15	-$22.71 million	($0.11)	-39.82

Cyrela Brazil Realty has higher earnings, but lower revenue than Exp World. Exp World is trading at a lower price-to-earnings ratio than Cyrela Brazil Realty, indicating that it is currently the more affordable of the two stocks.

Dividends

Cyrela Brazil Realty pays an annual dividend of $0.44 per share and has a dividend yield of 9.0%. Exp World pays an annual dividend of $0.20 per share and has a dividend yield of 4.6%. Cyrela Brazil Realty pays out 46.8% of its earnings in the form of a dividend. Exp World pays out -181.8% 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. Exp World has increased its dividend for 3 consecutive years.

Profitability

This table compares Cyrela Brazil Realty and Exp World’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyrela Brazil Realty	20.58%	17.92%	8.04%
Exp World	-0.35%	-5.43%	-2.89%

Analyst Ratings

This is a breakdown of current recommendations for Cyrela Brazil Realty and Exp World, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyrela Brazil Realty	0	1	0	0	2.00
Exp World	3	1	1	0	1.60

Exp World has a consensus target price of $5.17, indicating a potential upside of 17.96%. Given Exp World’s higher probable upside, analysts plainly believe Exp World is more favorable than Cyrela Brazil Realty.

Volatility & Risk

Cyrela Brazil Realty has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Exp World has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.

Summary

Cyrela Brazil Realty beats Exp World on 9 of the 17 factors compared between the two stocks.

About Cyrela Brazil Realty

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.

About Exp World

eXp World Holdings, Inc., together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through North American Realty, International Realty, Virbela, and Other Affiliated Services segments. It provides Virbela, a cloud-based technologies that provides data, lead generation, and marketing tools for real estate agents and employees. In addition, the company offers SUCCESS print magazine, SUCCESS.com portal, SUCCESS newsletters, SUCCESS podcasts, SUCCESS plus, SUCCESS speakers bureau, and SUCCESS coaching, podcasts, and digital training courses. It operates in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, and Poland. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is based in Bellingham, Washington.