The RMR Group (NASDAQ:RMR – Get Free Report) and Colliers International Group (NASDAQ:CIGI – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
The RMR Group has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Colliers International Group has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.
Institutional & Insider Ownership
42.3% of The RMR Group shares are owned by institutional investors. Comparatively, 80.1% of Colliers International Group shares are owned by institutional investors. 54.7% of The RMR Group shares are owned by insiders. Comparatively, 15.3% of Colliers International Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The RMR Group | $700.28 million | 0.78 | $17.60 million | $1.38 | 12.35 |
| Colliers International Group | $4.82 billion | 1.17 | $161.73 million | $2.29 | 49.52 |
Colliers International Group has higher revenue and earnings than The RMR Group. The RMR Group is trading at a lower price-to-earnings ratio than Colliers International Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for The RMR Group and Colliers International Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The RMR Group | 0 | 2 | 1 | 1 | 2.75 |
| Colliers International Group | 0 | 5 | 6 | 1 | 2.67 |
The RMR Group presently has a consensus price target of $20.50, indicating a potential upside of 20.31%. Colliers International Group has a consensus price target of $179.44, indicating a potential upside of 58.25%. Given Colliers International Group’s higher possible upside, analysts clearly believe Colliers International Group is more favorable than The RMR Group.
Profitability
This table compares The RMR Group and Colliers International Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The RMR Group | 3.52% | 4.03% | 2.44% |
| Colliers International Group | 2.15% | 20.72% | 4.47% |
Dividends
The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 10.6%. Colliers International Group pays an annual dividend of $0.30 per share and has a dividend yield of 0.3%. The RMR Group pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Colliers International Group pays out 13.1% of its earnings in the form of a dividend. The RMR Group has increased its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Colliers International Group beats The RMR Group on 12 of the 17 factors compared between the two stocks.
About The RMR Group
The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.
About Colliers International Group
Colliers International Group Inc. provides commercial real estate professional and investment management services to corporate and institutional clients in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers outsourcing and advisory services, such as engineering and project management, property management, valuation, and other services, as well as loan servicing for commercial real estate clients. It also provides property management services comprising building operations and maintenance, facilities management, lease administration, property accounting and financial reporting, contract management, and construction management; and project management services, which include bid document review, construction monitoring and delivery management, contract administration and integrated cost control, development management, facility and engineering functionality, milestone and performance monitoring, quality assurance, risk management, and strategic project consulting. In addition, the company offers corporate and workplace solutions; occupier; workplace strategy; property marketing services; transaction brokerage services, including sales and leasing for corporations, financial institutions, pension funds, sovereign wealth funds, insurance companies, governments, and individuals; and capital markets services for property sales, debt finance, mortgage investment banking services, as well as landlord and tenant representation services. Further, the company provides investment management services that consists of asset management and investor advisory services. Colliers International Group Inc. was founded in 1972 and is headquartered in Toronto, Canada.
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