RNT doesnt compare as much to REA business model, but more like Carsales model. REA is focussed on generating profits from agents only, RNT can be utilised by agents and private landlords. Considering private landlords make up to 45% of australian rentals, and the majority still need to advertise in print media at a larger cost and less content then RNT can provide, this presents a potentially lucrative source of revenue, even if the subscription to advertise is not as substantial as REA.
To believe that RNT could have a market cap similar to REA is incorrect, but the potential for a much larger cap than RNT currently has is IMO quite likely.
The only threat REA poses to RNT though is a takeover early in the game before a reasonable market cap is achieved.
Add to My Watchlist
What is My Watchlist?
