Critical Survey: CBRE Group (CBRE) versus Its Rivals

CBRE Group (NYSE: CBRE) is one of 48 publicly-traded companies in the “Real estate” industry, but how does it compare to its competitors? We will compare CBRE Group to related businesses based on the strength of its risk, dividends, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

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CBRE Group has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, CBRE Group’s competitors have a beta of 1.06, suggesting that their average share price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares CBRE Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CBRE Group $14.21 billion $691.47 million 17.50
CBRE Group Competitors $1.33 billion $328.00 million 17.49

CBRE Group has higher revenue and earnings than its competitors. CBRE Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares CBRE Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBRE Group 4.87% 25.03% 8.47%
CBRE Group Competitors 22.59% 4.62% 1.35%

Institutional & Insider Ownership

94.4% of CBRE Group shares are owned by institutional investors. Comparatively, 46.4% of shares of all “Real estate” companies are owned by institutional investors. 0.9% of CBRE Group shares are owned by company insiders. Comparatively, 20.8% of shares of all “Real estate” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for CBRE Group and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBRE Group 0 3 8 0 2.73
CBRE Group Competitors 153 373 584 16 2.41

CBRE Group currently has a consensus price target of $48.39, suggesting a potential upside of 2.02%. As a group, “Real estate” companies have a potential upside of 15.68%. Given CBRE Group’s competitors higher possible upside, analysts clearly believe CBRE Group has less favorable growth aspects than its competitors.

Summary

CBRE Group beats its competitors on 9 of the 13 factors compared.

CBRE Group Company Profile

CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide. It operates through Americas; Europe, Middle East and Africa; Asia Pacific; Global Investment Management; and Development Services segments. The company offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing; integrated property sales, and mortgage and structured financing services under the CBRE Capital Markets brand; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. It also provides facilities management, project management, transaction management, and strategic consulting services to occupiers of real estate; and property management services comprising construction management, marketing, building engineering, accounting, and financial services for owners/investors in office, industrial, and retail properties. In addition, the company provides investment management services under the CBRE Global Investors brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services under the Trammell Crow Company brand name primarily to users of and investors in commercial real estate. CBRE Group, Inc. was founded in 1906 and is headquartered in Los Angeles, California.

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