Analyzing Newmark Group (NMRK) and Fang (SFUN)

Newmark Group (NASDAQ: NMRK) and Fang (NYSE:SFUN) are both mid-cap financials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Earnings and Valuation

This table compares Newmark Group and Fang’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newmark Group $1.35 billion 1.79 $168.40 million $1.17 13.64
Fang $916.39 million 2.42 -$169.63 million ($0.02) -250.50

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

Profitability

This table compares Newmark Group and Fang’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newmark Group N/A N/A N/A
Fang -1.83% -3.20% -1.06%

Institutional and Insider Ownership

0.0% of Newmark Group shares are held by institutional investors. Comparatively, 44.7% of Fang shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Newmark Group and Fang, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newmark Group 0 1 5 0 2.83
Fang 0 1 2 0 2.67

Newmark Group currently has a consensus target price of $20.08, suggesting a potential upside of 25.84%. Fang has a consensus target price of $4.57, suggesting a potential downside of 8.88%. Given Newmark Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Newmark Group is more favorable than Fang.

Summary

Newmark Group beats Fang on 10 of the 12 factors compared between the two stocks.

About Newmark Group

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.

About Fang

Fang Holdings Limited, formerly SouFun Holdings Limited, operates as a real estate Internet portal in China. The Company’s Websites and mobile applications support active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors in China. The Company, through its Internet platform, is engaged in the development of transaction and financing platforms by offering direct sales services for new homes, online real estate brokerage services and financial services. The Company’s service offerings include marketing services, E-commerce services, listing services, Financial services and other value-added services. The Company provides secured loans in the form of entrusted loans and mortgage loans and unsecured loans primarily to home buyers, real estate developers and other borrowers that meet its credit assessment requirements.

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