Head to Head Analysis: Newmark Group (NASDAQ:NMRK) vs. CBRE Group (NYSE:CBRE)

CBRE Group (NYSE:CBRE) and Newmark Group (NASDAQ:NMRK) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Volatility & Risk

CBRE Group has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Newmark Group has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Institutional & Insider Ownership

98.4% of CBRE Group shares are owned by institutional investors. Comparatively, 58.4% of Newmark Group shares are owned by institutional investors. 0.5% of CBRE Group shares are owned by insiders. Comparatively, 3.0% of Newmark Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CBRE Group	2.98%	25.12%	7.46%
Newmark Group	4.11%	27.07%	8.76%

Valuation and Earnings

This table compares CBRE Group and Newmark Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBRE Group	$43.71 billion	0.93	$1.16 billion	$4.36	32.37
Newmark Group	$3.60 billion	0.71	$126.19 million	$0.81	17.53

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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBRE Group	0	1	7	0	2.88
Newmark Group	0	1	5	1	3.00

CBRE Group presently has a consensus price target of $180.33, suggesting a potential upside of 27.79%. Newmark Group has a consensus price target of $20.30, suggesting a potential upside of 42.96%. Given Newmark Group’s stronger consensus rating and higher possible upside, analysts clearly believe Newmark Group is more favorable than CBRE Group.

Summary

Newmark Group beats CBRE Group on 8 of the 15 factors compared between the two stocks.

About CBRE Group

CBRE Group, Inc. operates as a commercial real estate services and investment company in the United States, the United Kingdom, and internationally. The Advisory Services segment offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing of offices, and industrial and retail space; clients fully integrated property sales services under the CBRE Capital Markets brand; clients commercial mortgage and structured financing services; originates and sells commercial mortgage loans; property management services, such as marketing, building engineering, accounting, and financial services on a contractual basis for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment provides facilities management, including day-to-day management of client-occupied space, headquarters, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, and distribution facilities and retail space; and project management services comprising building consulting, program, and project and cost management services under the Turner & Townsend brand name. The Real Estate Investments segment offers investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services, such as real estate development and investment activities under the Trammell Crow Company and Telford Homes brands to users and investors in commercial real estate, and for their own account. CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.

About Newmark Group

Newmark Group, Inc. provides commercial real estate services in the United States, the United Kingdom, and internationally. The company offers capital markets consisting of investment sales and commercial mortgage brokerage; landlord or agency representation leasing; valuation and advisory; property management; commercial real estate technology platform and capabilities; the United Kingdom business rates services; due diligence, consulting, and other advisory services; GSEs and the Federal Housing Administration lending services comprising multifamily lending and loan servicing; asset management; and flexible workspace solutions for owners. It also provides tenant representation leasing; and global corporate services consisting of workplace and occupancy strategy, energy and sustainability services, technology, project management, real estate and lease administration, and facilities management. The company offers its services to commercial real estate tenants, investors, owners, occupiers, and developers; lenders; small and medium size businesses; and multi-national corporations. The company was formerly known as Newmark Grubb Knight Frank Capital Group and changed its name to Newmark Group, Inc. in October 2017. Newmark Group, Inc. was founded in 1929 and is based in New York, New York. Newmark Group, Inc.operates is a subsidiary of Cantor Fitzgerald, L.P.