Nationstar Mortgage (NYSE: NSM) and Newmark Group (NASDAQ:NMRK) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Insider and Institutional Ownership
98.8% of Nationstar Mortgage shares are held by institutional investors. Comparatively, 0.4% of Newmark Group shares are held by institutional investors. 0.8% of Nationstar Mortgage shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Nationstar Mortgage and Newmark Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nationstar Mortgage||$1.93 billion||0.86||$19.00 million||$1.90||9.00|
|Newmark Group||$1.60 billion||1.39||$144.49 million||$1.17||12.56|
Newmark Group has lower revenue, but higher earnings than Nationstar Mortgage. Nationstar Mortgage is trading at a lower price-to-earnings ratio than Newmark Group, indicating that it is currently the more affordable of the two stocks.
This table compares Nationstar Mortgage and Newmark Group’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 Nationstar Mortgage and Newmark Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nationstar Mortgage currently has a consensus price target of $18.50, suggesting a potential upside of 8.19%. Newmark Group has a consensus price target of $20.08, suggesting a potential upside of 36.71%. Given Newmark Group’s stronger consensus rating and higher probable upside, analysts plainly believe Newmark Group is more favorable than Nationstar Mortgage.
Nationstar Mortgage beats Newmark Group on 7 of the 13 factors compared between the two stocks.
Nationstar Mortgage Company Profile
Nationstar Mortgage Holdings Inc. provides servicing, origination and transaction based services principally to single-family residences throughout the United States. The Company operates through three segments: Servicing, Originations and Xome. The Company provides residential loan services in the United States. The Company also operates an integrated residential loan origination platform that is primarily focused on customer retention. Its Xome subsidiary offers an array of complementary services related to the purchase and disposition of residential real estate. It provides non-bank services and residential mortgage services in the United States conducting operations through its Nationstar Mortgage and Champion Mortgage brands. It originates and purchases conventional mortgage loans conforming to the underwriting standards of the government sponsored entities, which it collectively refers to as Agency loans. The Xome segment is a provider of technology and data-enhanced solutions.
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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