Head-To-Head Analysis: CBRE Group (CBG) vs. Kennedy-Wilson Holdings (KW)
CBRE Group (NYSE: CBG) and Kennedy-Wilson Holdings (NYSE:KW) are both mid-cap real estate services – nec companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.
This is a breakdown of recent ratings for CBRE Group and Kennedy-Wilson Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CBRE Group presently has a consensus price target of $40.25, indicating a potential downside of 5.91%. Kennedy-Wilson Holdings has a consensus price target of $28.33, indicating a potential upside of 49.52%. Given Kennedy-Wilson Holdings’ higher probable upside, analysts plainly believe Kennedy-Wilson Holdings is more favorable than CBRE Group.
This table compares CBRE Group and Kennedy-Wilson Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
CBRE Group has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Kennedy-Wilson Holdings has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
Institutional & Insider Ownership
95.7% of CBRE Group shares are owned by institutional investors. Comparatively, 86.7% of Kennedy-Wilson Holdings shares are owned by institutional investors. 1.0% of CBRE Group shares are owned by insiders. Comparatively, 17.1% of Kennedy-Wilson Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares CBRE Group and Kennedy-Wilson Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|CBRE Group||$13.07 billion||1.11||$571.97 million||$2.31||18.52|
|Kennedy-Wilson Holdings||$703.40 million||4.08||$5.59 million||$0.13||145.78|
CBRE Group has higher revenue and earnings than Kennedy-Wilson Holdings. CBRE Group is trading at a lower price-to-earnings ratio than Kennedy-Wilson Holdings, indicating that it is currently the more affordable of the two stocks.
Kennedy-Wilson Holdings pays an annual dividend of $0.68 per share and has a dividend yield of 3.6%. CBRE Group does not pay a dividend. Kennedy-Wilson Holdings pays out 523.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBRE Group has increased its dividend for 6 consecutive years.
CBRE Group beats Kennedy-Wilson Holdings on 12 of the 17 factors compared between the two stocks.
CBRE Group Company Profile
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.
Kennedy-Wilson Holdings Company Profile
Kennedy-Wilson Holdings, Inc. is a real estate investment company. The Company owns, operates, and invests in real estate both on its own and through its investment management platform. The Company focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy and Japan. The Company’s segments include KW Investments, and KW Investment Management and Real Estate Services (IMRES). KW Investments invests in multifamily, residential and commercial properties, as well as loans secured by real estate. IMRES provides real estate-related services to investors and lenders, with a focus on financial institution-based clients. As of December 31, 2016, the Company had an ownership interest in approximately 39 million square feet of property globally, including 25,943 multifamily rental units.
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