Comparing RE/MAX (NYSE:RMAX) and FTAI Infrastructure (NASDAQ:FIP)

RE/MAX (NYSE:RMAX) and FTAI Infrastructure (NASDAQ:FIP) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for RE/MAX and FTAI Infrastructure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RE/MAX	1	1	0	0	1.50
FTAI Infrastructure	1	0	2	0	2.33

RE/MAX currently has a consensus target price of $9.00, suggesting a potential upside of 18.89%. FTAI Infrastructure has a consensus target price of $11.00, suggesting a potential upside of 132.80%. Given FTAI Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe FTAI Infrastructure is more favorable than RE/MAX.

Earnings and Valuation

This table compares RE/MAX and FTAI Infrastructure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RE/MAX	$307.68 million	0.49	$7.12 million	$0.61	12.41
FTAI Infrastructure	$331.50 million	1.66	-$223.65 million	($2.46)	-1.92

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RE/MAX	4.27%	-61.21%	5.10%
FTAI Infrastructure	-41.09%	-75.13%	-3.02%

Volatility and Risk

RE/MAX has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, FTAI Infrastructure has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.

Insider & Institutional Ownership

93.2% of RE/MAX shares are owned by institutional investors. Comparatively, 87.4% of FTAI Infrastructure shares are owned by institutional investors. 6.8% of RE/MAX shares are owned by insiders. Comparatively, 1.2% of FTAI Infrastructure shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

RE/MAX beats FTAI Infrastructure on 8 of the 14 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 FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.