Financial Analysis: Realogy (NYSE:RLGY) & eXp World (EXPI)

Realogy (NYSE:RLGY) and eXp World (NASDAQ:EXPI) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Risk and Volatility

Realogy has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, eXp World has a beta of 5.15, indicating that its stock price is 415% more volatile than the S&P 500.

Valuation & Earnings

This table compares Realogy and eXp World’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Realogy $6.08 billion 0.24 $137.00 million $1.50 8.59
eXp World $500.15 million 1.24 -$22.43 million ($0.39) -26.10

Realogy has higher revenue and earnings than eXp World. eXp World is trading at a lower price-to-earnings ratio than Realogy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

5.2% of eXp World shares are held by institutional investors. 1.2% of Realogy shares are held by company insiders. Comparatively, 47.2% of eXp World shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Realogy pays an annual dividend of $0.36 per share and has a dividend yield of 2.8%. eXp World does not pay a dividend. Realogy pays out 24.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for Realogy and eXp World, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Realogy 2 3 1 0 1.83
eXp World 0 0 3 0 3.00

Realogy presently has a consensus target price of $18.58, indicating a potential upside of 44.17%. eXp World has a consensus target price of $20.00, indicating a potential upside of 96.46%. Given eXp World’s stronger consensus rating and higher probable upside, analysts plainly believe eXp World is more favorable than Realogy.

Profitability

This table compares Realogy and eXp World’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Realogy 2.25% 7.77% 2.53%
eXp World -4.48% -120.59% -52.49%

Realogy Company Profile

Realogy Holdings Corp. is an integrated provider of residential real estate services in the United States. The Company is the franchisor of residential real estate brokerages with some of the recognized brands in the real estate industry, the owner of United States residential real estate brokerage offices, the global provider of outsourced employee relocation services and a provider of title and settlement services. The Company’s operating platform is supported by the Company’s portfolio of industry franchise brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby’s International Realty and Better Homes and Gardens Real Estate and the Company also owns and operates the Corcoran Group and CitiHabitats brands. On August 14, 2014, Realogy Holdings Corp, through its Realogy Group LLC wholly owned subsidiary, acquired ZipRealty Inc (ZipRealty).

eXp World Company Profile

eXp World Holdings, Inc. provides cloud-based real estate brokerage services for residential real estate market in the United states and Canada. The company facilitates buyers to search real-time property listings and sellers to list their properties through its Website; and provides buyers and sellers access to a network of professional, consumer-centric agents, and brokers. It also offers access to collaborative tools and training services for real estate brokers and agents. In addition, the company provides marketing, training, and other support services to its brokers and agents through a proprietary technology enabled services, and technology and support services contracted to third parties. 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 founded in 2008 and is based in Bellingham, Washington.

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