Reviewing The RMR Group (NASDAQ:RMR) and Colliers International Group (NASDAQ:CIGI)

Colliers International Group (NASDAQ:CIGI) and The RMR Group (NASDAQ:RMR) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Dividends

Colliers International Group pays an annual dividend of $0.30 per share and has a dividend yield of 0.3%. The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 10.9%. Colliers International Group pays out 14.9% of its earnings in the form of a dividend. The RMR Group pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has increased its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Colliers International Group and The RMR Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colliers International Group	$5.56 billion	1.03	$103.10 million	$2.01	57.22
The RMR Group	$700.28 million	0.76	$17.60 million	$1.38	11.97

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

Institutional & Insider Ownership

80.1% of Colliers International Group shares are held by institutional investors. Comparatively, 42.3% of The RMR Group shares are held by institutional investors. 15.3% of Colliers International Group shares are held by insiders. Comparatively, 54.7% of The RMR Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Colliers International Group and The RMR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Colliers International Group	1.85%	20.43%	4.46%
The RMR Group	3.52%	4.03%	2.44%

Analyst Ratings

This is a summary of recent recommendations for Colliers International Group and The RMR Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colliers International Group	0	4	6	1	2.73
The RMR Group	0	2	1	1	2.75

Colliers International Group presently has a consensus price target of $168.89, indicating a potential upside of 46.83%. The RMR Group has a consensus price target of $20.50, indicating a potential upside of 24.09%. Given Colliers International Group’s higher possible upside, equities research analysts plainly believe Colliers International Group is more favorable than The RMR Group.

Volatility and Risk

Colliers International Group has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, The RMR Group has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Summary

Colliers International Group beats The RMR Group on 12 of the 17 factors compared between the two stocks.

About Colliers International Group

Colliers International Group Inc. provides commercial real estate professional and investment management services to corporate and institutional clients in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers outsourcing and advisory services, such as engineering and project management, property management, valuation, and other services, as well as loan servicing for commercial real estate clients. It also provides property management services comprising building operations and maintenance, facilities management, lease administration, property accounting and financial reporting, contract management, and construction management; and project management services, which include bid document review, construction monitoring and delivery management, contract administration and integrated cost control, development management, facility and engineering functionality, milestone and performance monitoring, quality assurance, risk management, and strategic project consulting. In addition, the company offers corporate and workplace solutions; occupier; workplace strategy; property marketing services; transaction brokerage services, including sales and leasing for corporations, financial institutions, pension funds, sovereign wealth funds, insurance companies, governments, and individuals; and capital markets services for property sales, debt finance, mortgage investment banking services, as well as landlord and tenant representation services. Further, the company provides investment management services that consists of asset management and investor advisory services. Colliers International Group Inc. was founded in 1972 and is headquartered in Toronto, Canada.

About The RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.