Newmark Group (NASDAQ: NMRK) and Kennedy-Wilson (NYSE:KW) are both mid-cap financials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
66.6% of Kennedy-Wilson shares are held by institutional investors. 17.1% of Kennedy-Wilson shares are held by company 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.
This table compares Newmark Group and Kennedy-Wilson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Newmark Group and Kennedy-Wilson, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Newmark Group presently has a consensus target price of $19.90, suggesting a potential upside of 23.91%. Kennedy-Wilson has a consensus target price of $28.33, suggesting a potential upside of 64.25%. Given Kennedy-Wilson’s higher possible upside, analysts plainly believe Kennedy-Wilson is more favorable than Newmark Group.
Valuation & Earnings
This table compares Newmark Group and Kennedy-Wilson’s gross 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||3.71||$5.59 million||$0.13||132.70|
Kennedy-Wilson has higher revenue and earnings than Newmark Group. Newmark 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.
Kennedy-Wilson pays an annual dividend of $0.76 per share and has a dividend yield of 4.4%. 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. Newmark Group has increased its dividend for 7 consecutive years.
Kennedy-Wilson beats Newmark Group on 9 of the 14 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Newmark Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Newmark Group and related companies with MarketBeat.com's FREE daily email newsletter.