Marcus & Millichap (NYSE: MMI) and Colliers International Group (NASDAQ:CIGI) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Valuation & Earnings

This table compares Marcus & Millichap and Colliers International Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Marcus & Millichap $717.45 million 1.53 $64.65 million $1.54 18.70
Colliers International Group $1.90 billion 1.21 $67.96 million $1.53 38.69

Colliers International Group has higher revenue and earnings than Marcus & Millichap. Marcus & Millichap 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 Ratings

This is a summary of recent ratings and target prices for Marcus & Millichap and Colliers International Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marcus & Millichap 0 3 0 0 2.00
Colliers International Group 0 0 6 0 3.00

Marcus & Millichap presently has a consensus price target of $27.00, suggesting a potential downside of 6.25%. Colliers International Group has a consensus price target of $72.25, suggesting a potential upside of 22.04%. Given Colliers International Group’s stronger consensus rating and higher possible upside, analysts plainly believe Colliers International Group is more favorable than Marcus & Millichap.

Risk and Volatility

Marcus & Millichap has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Colliers International Group has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.

Dividends

Colliers International Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Marcus & Millichap does not pay a dividend. Colliers International Group pays out 6.5% of its earnings in the form of a dividend.

Profitability

This table compares Marcus & Millichap and Colliers International Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marcus & Millichap 8.51% 22.56% 15.79%
Colliers International Group 2.81% 41.41% 7.34%

Insider & Institutional Ownership

42.1% of Marcus & Millichap shares are held by institutional investors. Comparatively, 63.5% of Colliers International Group shares are held by institutional investors. 58.3% of Marcus & Millichap shares are held by insiders. Comparatively, 15.3% of Colliers International Group shares are held 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.

Summary

Colliers International Group beats Marcus & Millichap on 10 of the 16 factors compared between the two stocks.

Marcus & Millichap Company Profile

Marcus & Millichap, Inc. is a brokerage company specializing in commercial real estate investment sales, financing, research and advisory services. The Company offers three primary services to its clients: commercial real estate investment brokerage, financing, and ancillary services, including other research, advisory and consulting services. It provides its financing services through Marcus & Millichap Capital Corporation, which is a broker of debt financing for commercial properties. Its research, advisory and consulting services are designed to assist clients in forming their investment strategy and making transaction decisions. Its advisory services include opinions of value, operating and financial performance benchmarking analysis, and specific asset buy-sell strategies. As of December 31, 2016, the Company had over 1,700 investment sales and financing professionals in 82 offices in the United States and Canada that provide investment brokerage and financing services.

Colliers International Group Company Profile

Colliers International Group Inc. is engaged in the provision of commercial real estate services. The Company offers services, including outsourcing and advisory services, lease brokerage and sales brokerage. Its segments include Americas; Europe, Middle East and Africa (EMEA); Asia Pacific, and Corporate. It is engaged in the transaction brokerage business, which provides services in sales and leasing for commercial clients. The Sales and Lease Brokerage Division executes transactions across a client base, including corporations, financial institutions, governments and individuals. It provides services for sales, leases and mortgages in various areas, such as landlord representation, tenant representation, and capital markets and investment services. The Outsourcing and Advisory Services Division provides appraisal and valuation services; facility, property and asset management services; project management services, and research for commercial real estate clients.

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