Contrasting CBRE Group (CBG) & RE/MAX Holdings (RMAX)
CBRE Group (NYSE: CBG) and RE/MAX Holdings (NYSE:RMAX) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitabiliy and risk.
Valuation & Earnings
This table compares CBRE Group and RE/MAX Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CBRE Group||$13.21 billion||0.98||$1.26 billion||$1.83||20.92|
|RE/MAX Holdings||$181.61 million||5.66||$92.84 million||$1.28||45.35|
CBRE Group has higher revenue and earnings than RE/MAX Holdings. CBRE Group is trading at a lower price-to-earnings ratio than RE/MAX Holdings, indicating that it is currently the more affordable of the two stocks.
RE/MAX Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. CBRE Group does not pay a dividend. RE/MAX Holdings pays out 56.3% of its earnings in the form of a dividend. RE/MAX Holdings has raised its dividend for 2 consecutive years.
This table compares CBRE Group and RE/MAX Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
CBRE Group has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, RE/MAX Holdings has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
This is a breakdown of recent ratings for CBRE Group and RE/MAX Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CBRE Group presently has a consensus target price of $38.67, indicating a potential upside of 0.98%. RE/MAX Holdings has a consensus target price of $54.50, indicating a potential downside of 6.12%. Given CBRE Group’s stronger consensus rating and higher possible upside, research analysts plainly believe CBRE Group is more favorable than RE/MAX Holdings.
Insider and Institutional Ownership
96.3% of CBRE Group shares are owned by institutional investors. 1.0% of CBRE Group shares are owned by company insiders. Comparatively, 0.6% of RE/MAX Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
CBRE Group beats RE/MAX Holdings on 10 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.
RE/MAX Holdings Company Profile
RE/MAX Holdings, Inc. is a franchisor in the real estate industry, franchising real estate brokerages around the world under the RE/MAX brand and mortgage brokerages within the United States under the Motto Mortgage brand. The Company is a franchised business, with all of the RE/MAX branded brokerage office locations being operated by franchisees, including RE/MAX, LLC, which owns the RE/MAX brand, and sells franchises and franchising rights; Independent Regional Franchise Owner, which owns rights to sell brokerage franchises in a specified region; Franchisee (or Broker-Owner), which operates a RE/MAX-branded brokerage office, lists properties and recruits agents, and Agent (or Sales Associate), including branded independent contractors operating out of local franchise brokerage offices. Under Motto business, the Company operates as a mortgage brokerage franchisor. As a franchisor, the Company helps its Motto franchisees to establish independent mortgage brokerage companies.
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