Legacy Housing (NASDAQ:LEGH – Get Free Report) and RE/MAX (NYSE:RMAX – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares Legacy Housing and RE/MAX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Legacy Housing | 26.01% | 8.08% | 7.44% |
| RE/MAX | 0.13% | -90.29% | 5.82% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Legacy Housing and RE/MAX, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Legacy Housing | 0 | 4 | 0 | 0 | 2.00 |
| RE/MAX | 1 | 0 | 1 | 0 | 2.00 |
Institutional and Insider Ownership
89.3% of Legacy Housing shares are held by institutional investors. Comparatively, 93.2% of RE/MAX shares are held by institutional investors. 30.1% of Legacy Housing shares are held by company insiders. Comparatively, 6.8% of RE/MAX shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Legacy Housing has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, RE/MAX has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.
Valuation and Earnings
This table compares Legacy Housing and RE/MAX”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Legacy Housing | $163.26 million | 3.65 | $41.81 million | $1.78 | 14.07 |
| RE/MAX | $291.60 million | 0.66 | $8.15 million | $0.01 | 903.00 |
Legacy Housing has higher earnings, but lower revenue than RE/MAX. Legacy Housing is trading at a lower price-to-earnings ratio than RE/MAX, indicating that it is currently the more affordable of the two stocks.
Summary
Legacy Housing beats RE/MAX on 7 of the 13 factors compared between the two stocks.
About Legacy Housing
Legacy Housing Corporation engages in the building, sale, and financing of manufactured homes and tiny houses primarily in the southern United States. It manufactures and provides for the transport of mobile homes, including 1 to 5 bedrooms with 1 to 3 1/2 bathrooms; and provides wholesale financing to dealers and mobile home parks, as well as retail financing to consumers. The company also offers inventory financing for its independent retailers; consumer financing for its products; and financing to manufactured housing community owners that buy or lease its products for use in their rental housing communities. In addition, it involved in financing and developing new manufactured home communities. The company markets its homes under the Legacy brand through a network of independent retailers and company-owned stores; and directly to manufactured home communities. Legacy Housing Corporation was founded in 2005 and is headquartered in Bedford, Texas.
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.
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