Analyzing CBRE Group (CBRE) and Griffin Industrial Realty (GRIF)

CBRE Group (NASDAQ: GRIF) and Griffin Industrial Realty (NASDAQ:GRIF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Dividends

Griffin Industrial Realty pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. CBRE Group does not pay a dividend.

Insider and Institutional Ownership

95.0% of CBRE Group shares are owned by institutional investors. Comparatively, 46.7% of Griffin Industrial Realty shares are owned by institutional investors. 0.9% of CBRE Group shares are owned by company insiders. Comparatively, 28.0% of Griffin Industrial Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for CBRE Group and Griffin Industrial Realty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBRE Group 0 1 7 1 3.00
Griffin Industrial Realty 0 0 0 0 N/A

CBRE Group currently has a consensus price target of $51.79, indicating a potential upside of 13.24%. Given CBRE Group’s higher possible upside, analysts clearly believe CBRE Group is more favorable than Griffin Industrial Realty.

Profitability

This table compares CBRE Group and Griffin Industrial Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBRE Group 4.21% 23.53% 8.34%
Griffin Industrial Realty -1.53% 0.48% 0.18%

Volatility & Risk

CBRE Group has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Griffin Industrial Realty has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Earnings and Valuation

This table compares CBRE Group and Griffin Industrial Realty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBRE Group $14.21 billion 1.09 $691.47 million $2.71 16.87
Griffin Industrial Realty $43.88 million 4.39 $4.62 million N/A N/A

CBRE Group has higher revenue and earnings than Griffin Industrial Realty.

Summary

CBRE Group beats Griffin Industrial Realty on 10 of the 14 factors compared between the two stocks.

About CBRE Group

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.

About Griffin Industrial Realty

Griffin Industrial Realty, Inc. develops, manages, and leases industrial and commercial properties in the United States. As of November 30, 2017, the company owned 35 buildings comprising 23 industrial/warehouse buildings, 11 office/flex buildings, and a restaurant building. It also owns approximately 2,791 acres of land in Connecticut, as well as owns approximately 346 acres of land in Massachusetts, 131 acres of land in Pennsylvania, 18 acres in North Carolina, and 1,066 acres in northern Florida. The company was formerly known as Griffin Land & Nurseries, Inc. and changed its name to Griffin Industrial Realty, Inc. in May 2015. Griffin Industrial Realty, Inc. was founded in 1970 and is headquartered in New York City, New York.

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