Kennedy-Wilson (NYSE: KW) and CBRE Group (NYSE:CBRE) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Volatility and Risk
Kennedy-Wilson has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, CBRE Group has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
84.6% of Kennedy-Wilson shares are owned by institutional investors. Comparatively, 94.4% of CBRE Group shares are owned by institutional investors. 17.1% of Kennedy-Wilson shares are owned by insiders. Comparatively, 0.9% of CBRE Group shares are owned by 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.
Earnings & Valuation
This table compares Kennedy-Wilson and CBRE Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kennedy-Wilson||$810.60 million||3.39||$100.50 million||$0.45||40.44|
|CBRE Group||$14.21 billion||1.14||$691.47 million||$2.71||17.56|
CBRE Group has higher revenue and earnings than Kennedy-Wilson. CBRE Group is trading at a lower price-to-earnings ratio than Kennedy-Wilson, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Kennedy-Wilson and CBRE Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kennedy-Wilson presently has a consensus price target of $26.00, suggesting a potential upside of 42.86%. CBRE Group has a consensus price target of $48.39, suggesting a potential upside of 1.70%. Given Kennedy-Wilson’s higher probable upside, equities research analysts plainly believe Kennedy-Wilson is more favorable than CBRE Group.
This table compares Kennedy-Wilson and CBRE Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kennedy-Wilson pays an annual dividend of $0.76 per share and has a dividend yield of 4.2%. CBRE Group does not pay a dividend. Kennedy-Wilson pays out 168.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kennedy-Wilson has raised its dividend for 7 consecutive years.
CBRE Group beats Kennedy-Wilson on 10 of the 17 factors compared between the two stocks.
Kennedy-Wilson Holdings, Inc. operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company owns interest in approximately 53.1 million square feet of property, including 27,161 multifamily rental units; and 18.8 million square feet of commercial property. It also provides real estate services primarily to financial services clients. In addition, the company is involved in the development, redevelopment, and entitlement of real estate properties; and management of real estate properties for third parties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.
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.
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