KE (NYSE:BEKE – Get Free Report) and AMREP (NYSE:AXR – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Profitability
This table compares KE and AMREP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KE | 5.38% | 7.62% | 4.38% |
| AMREP | 14.31% | 4.21% | 4.09% |
Earnings & Valuation
This table compares KE and AMREP”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KE | $13.52 billion | 1.33 | $428.13 million | $0.61 | 26.30 |
| AMREP | $52.85 million | 2.32 | $10.29 million | $1.08 | 21.34 |
KE has higher revenue and earnings than AMREP. AMREP is trading at a lower price-to-earnings ratio than KE, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
KE has a beta of -0.26, suggesting that its stock price is 126% less volatile than the S&P 500. Comparatively, AMREP has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.
Institutional and Insider Ownership
39.3% of KE shares are held by institutional investors. Comparatively, 59.9% of AMREP shares are held by institutional investors. 6.8% of KE shares are held by insiders. Comparatively, 37.4% of AMREP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for KE and AMREP, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KE | 0 | 1 | 6 | 1 | 3.00 |
| AMREP | 0 | 3 | 0 | 0 | 2.00 |
KE currently has a consensus price target of $23.64, indicating a potential upside of 47.34%. AMREP has a consensus price target of $22.00, indicating a potential downside of 4.55%. Given KE’s stronger consensus rating and higher possible upside, research analysts plainly believe KE is more favorable than AMREP.
Summary
KE beats AMREP on 9 of the 15 factors compared between the two stocks.
About KE
KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.
About AMREP
AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.
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