Critical Survey: CBRE Group (CBG) & Newmark Group (NMRK)

Newmark Group (NASDAQ: NMRK) and CBRE Group (NYSE:CBG) are both mid-cap financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Newmark Group and CBRE Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newmark Group 0 1 4 0 2.80
CBRE Group 0 1 3 0 2.75

Newmark Group currently has a consensus target price of $19.90, suggesting a potential upside of 23.91%. CBRE Group has a consensus target price of $41.25, suggesting a potential downside of 8.31%. Given Newmark Group’s stronger consensus rating and higher possible upside, analysts plainly believe Newmark Group is more favorable than CBRE Group.

Insider & Institutional Ownership

94.7% of CBRE Group shares are owned by institutional investors. 1.0% of CBRE Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Newmark Group and CBRE Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newmark Group N/A N/A N/A $1.17 13.73
CBRE Group $13.07 billion 1.17 $571.97 million $2.32 19.39

CBRE Group has higher revenue and earnings than Newmark Group. Newmark Group is trading at a lower price-to-earnings ratio than CBRE Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Newmark Group and CBRE Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newmark Group N/A N/A N/A
CBRE Group 5.75% 26.22% 8.39%

Summary

CBRE Group beats Newmark Group on 8 of the 11 factors compared between the two stocks.

About Newmark Group

Newmark Group, Inc. is a commercial real estate services company. The Company is focused on offering products and services to both owners and occupiers across the entire commercial real estate industry. Its investor/owner services and products include capital markets, which consists of investment sales, debt and structured finance and loan sales, agency leasing, property management, valuation and advisory, diligence and underwriting and government-sponsored enterprise lending and loan servicing. Its occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management.

About CBRE Group

CBRE Group, Inc. is a holding company that conducts all of its operations through its subsidiaries. The Company operates as a commercial real estate services and investment company. The Company operates through the segments: The Americas; Europe, Middle East and Africa (EMEA); Asia Pacific; Global Investment Management, and Development Services. The Company provides commercial real estate services under the CBRE brand name, investment management services under the CBRE Global Investors brand name and development services under the Trammell Crow Company brand name. The Company’s business is focused on commercial property, corporate facilities, project and transaction management, tenant/occupier and property/agency leasing, capital markets solutions (property sales, commercial mortgage brokerage, loan origination and servicing) real estate investment management, valuation, development services and proprietary research.

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