Critical Analysis: Kennedy-Wilson (KW) & Newmark Group (NMRK)
Kennedy-Wilson (NYSE: KW) and Newmark Group (NASDAQ:NMRK) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Kennedy-Wilson pays an annual dividend of $0.76 per share and has a dividend yield of 4.3%. Newmark Group does not pay a dividend. Kennedy-Wilson pays out 584.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kennedy-Wilson has increased its dividend for 7 consecutive years.
This table compares Kennedy-Wilson 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|
|Kennedy-Wilson||$703.40 million||3.80||$5.59 million||$0.13||135.78|
Kennedy-Wilson has higher revenue and earnings than Newmark Group.
This is a summary of current ratings for Kennedy-Wilson and Newmark Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kennedy-Wilson currently has a consensus price target of $28.33, suggesting a potential upside of 60.53%. Newmark Group has a consensus price target of $19.90, suggesting a potential upside of 25.39%. Given Kennedy-Wilson’s higher possible upside, equities research analysts clearly believe Kennedy-Wilson is more favorable than Newmark Group.
This table compares Kennedy-Wilson and Newmark Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
66.6% of Kennedy-Wilson shares are owned by institutional investors. 17.1% of Kennedy-Wilson shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Kennedy-Wilson beats Newmark Group on 9 of the 12 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.
Newmark Group Company Profile
Newmark Group, Inc. is a commercial real estate services company. The Company is focused on offering products and services to both owners and occupiers across the entire commercial real estate industry. Its investor/owner services and products include capital markets, which consists of investment sales, debt and structured finance and loan sales, agency leasing, property management, valuation and advisory, diligence and underwriting and government-sponsored enterprise lending and loan servicing. Its occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management.
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