Anywhere Real Estate (NYSE:HOUS) versus Redfin (NASDAQ:RDFN) Critical Comparison

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Anywhere Real Estate (NYSE:HOUSGet Rating) and Redfin (NASDAQ:RDFNGet Rating) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

97.9% of Redfin shares are held by institutional investors. 2.7% of Anywhere Real Estate shares are held by insiders. Comparatively, 5.2% of Redfin shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Anywhere Real Estate and Redfin’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anywhere Real Estate $7.98 billion 0.15 $343.00 million $2.78 3.67
Redfin $1.92 billion 0.49 -$109.61 million ($1.62) -5.40

Anywhere Real Estate has higher revenue and earnings than Redfin. Redfin is trading at a lower price-to-earnings ratio than Anywhere Real Estate, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Anywhere Real Estate and Redfin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anywhere Real Estate 4.13% 14.24% 4.21%
Redfin -7.31% -53.87% -8.07%

Volatility and Risk

Anywhere Real Estate has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500. Comparatively, Redfin has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Anywhere Real Estate and Redfin, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anywhere Real Estate 1 0 0 0 1.00
Redfin 1 13 1 0 2.00

Anywhere Real Estate presently has a consensus target price of $10.00, indicating a potential downside of 1.86%. Redfin has a consensus target price of $26.23, indicating a potential upside of 200.12%. Given Redfin’s stronger consensus rating and higher probable upside, analysts plainly believe Redfin is more favorable than Anywhere Real Estate.

Summary

Anywhere Real Estate beats Redfin on 8 of the 14 factors compared between the two stocks.

About Anywhere Real Estate

(Get Rating)

Anywhere Real Estate Inc., through its subsidiaries, provides residential real estate services. It operates through three segments: Realogy Franchise Group, and Realogy Brokerage Group. The Realogy Franchise Group segment franchises its residential real estate brokerages under the Century 21, Coldwell Banker, Coldwell Banker Commercial, Corcoran, ERA, Sotheby’s International Realty, and Better Homes and Gardens Real Estate brand names. This segment also offers lead generation and relocation services. As of December 31, 2020, this segment’s real estate franchise systems and proprietary brands had approximately 20,100 offices and 320,700 independent sales agents worldwide. The Realogy Brokerage Group segment owns and operates a full-service residential real estate brokerage business under the Coldwell Banker, Corcoran, and Sotheby’s International Realty brand names to assist home buyers and sellers in the listing, marketing, selling, and finding homes. As of December 31, 2020, this segment owned and operated 670 brokerage offices with approximately 53,100 independent sales agents. The Realogy Title Group segment provides title, escrow, and settlement services to real estate companies, corporations, and financial institutions. This segment also serves as an underwriter of title insurance policies in connection with residential and commercial real estate transactions. The company was formerly known as Realogy Holdings Corp. and changed its name to Anywhere Real Estate Inc. in June 2022. Anywhere Real Estate Inc. was incorporated in 2006 and is headquartered in Madison, New Jersey.

About Redfin

(Get Rating)

Redfin Corporation operates as a residential real estate brokerage company in the United States and Canada. The company operates an online real estate marketplace and provides real estate services, including assisting individuals in the purchase or sell of home. It also provides title and settlement services; originates and sells mortgages; and buys and sells homes. The company was formerly known as Appliance Computing Inc. and changed its name to Redfin Corporation in May 2006. Redfin Corporation was incorporated in 2002 and is headquartered in Seattle, Washington.

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