Kennedy-Wilson (NYSE: KW) and CBRE Group (NYSE:CBG) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

66.6% of Kennedy-Wilson shares are held by institutional investors. Comparatively, 95.0% of CBRE Group shares are held by institutional investors. 17.1% of Kennedy-Wilson shares are held by insiders. Comparatively, 1.0% of CBRE Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Kennedy-Wilson pays an annual dividend of $0.68 per share and has a dividend yield of 3.7%. CBRE Group does not pay a dividend. Kennedy-Wilson 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 raised its dividend for 6 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Kennedy-Wilson 1.94% 2.04% 0.60%
CBRE Group 5.75% 26.22% 8.39%

Volatility and Risk

Kennedy-Wilson has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, CBRE Group has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kennedy-Wilson and CBRE Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kennedy-Wilson $703.40 million 3.94 $5.59 million $0.13 140.78
CBRE Group $13.07 billion 1.13 $571.97 million $2.32 18.80

CBRE Group has higher revenue and earnings than Kennedy-Wilson. CBRE Group is trading at a lower price-to-earnings ratio than Kennedy-Wilson, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kennedy-Wilson and CBRE Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kennedy-Wilson 0 2 2 0 2.50
CBRE Group 0 1 3 0 2.75

Kennedy-Wilson currently has a consensus price target of $28.33, suggesting a potential upside of 54.83%. CBRE Group has a consensus price target of $40.25, suggesting a potential downside of 7.73%. Given Kennedy-Wilson’s higher probable upside, equities analysts plainly believe Kennedy-Wilson is more favorable than CBRE Group.

Summary

CBRE Group beats Kennedy-Wilson on 12 of the 17 factors compared between the two stocks.

Kennedy-Wilson 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.

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.

Receive News & Ratings for Kennedy-Wilson Holdings Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kennedy-Wilson Holdings Inc and related companies with MarketBeat.com's FREE daily email newsletter.