Head-To-Head Contrast: Nationstar Mortgage (NSM) versus Newmark Group (NMRK)

Newmark Group (NASDAQ: NMRK) and Nationstar Mortgage (NYSE:NSM) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Newmark Group and Nationstar Mortgage’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
Nationstar Mortgage 9.34% 8.88% 0.80%

Valuation and Earnings

This table compares Newmark Group and Nationstar Mortgage’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newmark Group N/A N/A N/A N/A N/A
Nationstar Mortgage $1.93 billion 0.96 $19.00 million $1.90 9.96

Nationstar Mortgage has higher revenue and earnings than Newmark Group.

Institutional and Insider Ownership

98.4% of Nationstar Mortgage shares are held by institutional investors. 0.8% of Nationstar Mortgage shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Newmark Group and Nationstar Mortgage, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newmark Group 0 1 4 0 2.80
Nationstar Mortgage 1 4 4 0 2.33

Newmark Group presently has a consensus price target of $19.90, indicating a potential upside of 21.86%. Nationstar Mortgage has a consensus price target of $18.50, indicating a potential downside of 2.22%. Given Newmark Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Newmark Group is more favorable than Nationstar Mortgage.

Summary

Nationstar Mortgage beats Newmark Group on 6 of the 8 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.

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.

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