Critical Analysis: La Rosa (LRHC) versus The Competition

Institutional & Insider Ownership

7.6% of La Rosa shares are held by institutional investors. Comparatively, 56.4% of shares of all “Real estate agents & managers” companies are held by institutional investors. 45.5% of La Rosa shares are held by company insiders. Comparatively, 22.5% of shares of all “Real estate agents & managers” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares La Rosa and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
La Rosa	-26.49%	-174.79%	-96.88%
La Rosa Competitors	-2.25%	-23.71%	-9.77%

Valuation and Earnings

This table compares La Rosa and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
La Rosa	$50.37 million	-$7.82 million	-0.53
La Rosa Competitors	$4.29 billion	$117.02 million	32.21

La Rosa’s rivals have higher revenue and earnings than La Rosa. La Rosa is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

La Rosa rivals beat La Rosa on 7 of the 8 factors compared.

La Rosa Company Profile

La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. The company operates through five segments: Real Estate Brokerage Services (Residential), Franchising Services, Coaching Services, Property Management, and Real Estate Brokerage Services (Commercial). It delivers coaching services to its brokers and franchisee's brokers; and franchises real estate brokerage agencies. The company also engages in the residential and commercial real estate brokerage business; and property management services to owners of single-family residential properties. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, Florida.