Newmark Group (NASDAQ:NMRK – Get Free Report) and City Developments (OTCMKTS:CDEVY – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Risk and Volatility
Newmark Group has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500. Comparatively, City Developments has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.
Valuation & Earnings
This table compares Newmark Group and City Developments”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Newmark Group | $3.16 billion | 0.99 | $61.23 million | $0.57 | 30.28 |
| City Developments | $2.45 billion | 2.05 | $150.66 million | N/A | N/A |
City Developments has lower revenue, but higher earnings than Newmark Group.
Profitability
This table compares Newmark Group and City Developments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Newmark Group | 3.26% | 23.69% | 7.20% |
| City Developments | N/A | N/A | N/A |
Dividends
Newmark Group pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. City Developments pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. Newmark Group pays out 21.1% of its earnings in the form of a dividend.
Analyst Recommendations
This is a summary of current recommendations and price targets for Newmark Group and City Developments, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Newmark Group | 0 | 2 | 6 | 1 | 2.89 |
| City Developments | 0 | 0 | 1 | 0 | 3.00 |
Newmark Group currently has a consensus price target of $18.29, indicating a potential upside of 5.94%. Given Newmark Group’s higher probable upside, equities analysts clearly believe Newmark Group is more favorable than City Developments.
Insider and Institutional Ownership
58.4% of Newmark Group shares are held by institutional investors. 3.1% of Newmark Group shares are held 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.
Summary
Newmark Group beats City Developments on 11 of the 15 factors compared between the two stocks.
About Newmark Group
Newmark Group, Inc. provides commercial real estate services in the United States, the United Kingdom, and internationally. The company offers capital markets consisting of investment sales and commercial mortgage brokerage; landlord or agency representation leasing; valuation and advisory; property management; commercial real estate technology platform and capabilities; the United Kingdom business rates services; due diligence, consulting, and other advisory services; GSEs and the Federal Housing Administration lending services comprising multifamily lending and loan servicing; asset management; and flexible workspace solutions for owners. It also provides tenant representation leasing; and global corporate services consisting of workplace and occupancy strategy, energy and sustainability services, technology, project management, real estate and lease administration, and facilities management. The company offers its services to commercial real estate tenants, investors, owners, occupiers, and developers; lenders; small and medium size businesses; and multi-national corporations. The company was formerly known as Newmark Grubb Knight Frank Capital Group and changed its name to Newmark Group, Inc. in October 2017. Newmark Group, Inc. was founded in 1929 and is based in New York, New York. Newmark Group, Inc.operates is a subsidiary of Cantor Fitzgerald, L.P.
About City Developments
City Developments Limited (CDL) is a leading global real estate company with a network spanning 112 locations in 29 countries and regions. Listed on the Singapore Exchange, the Group is one of the largest companies by market capitalisation. Its income-stable and geographically-diverse portfolio comprises residences, offices, hotels, serviced apartments, shopping malls and integrated developments. With a proven track record of over 55 years in real estate development, investment and management, CDL has developed over 47,000 homes and owns over 23 million square feet of gross floor area in residential, commercial and hospitality assets globally. Its diversified global land bank offers 3.5 million square feet of land area.
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