CBRE Group (NYSE: CBG) and American Farmland (NASDAQ:AFCO) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for CBRE Group and American Farmland, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBRE Group 0 1 2 0 2.67
American Farmland 0 0 0 0 N/A

CBRE Group presently has a consensus price target of $39.00, suggesting a potential downside of 0.81%. Given CBRE Group’s higher possible upside, equities research analysts plainly believe CBRE Group is more favorable than American Farmland.

Profitability

This table compares CBRE Group and American Farmland’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBRE Group 5.21% 26.40% 8.08%
American Farmland 12.35% 1.47% 0.94%

Valuation and Earnings

This table compares CBRE Group and American Farmland’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CBRE Group $13.34 billion 0.99 $1.26 billion $2.05 19.18
American Farmland N/A N/A N/A N/A N/A

CBRE Group has higher revenue and earnings than American Farmland.

Insider & Institutional Ownership

95.6% of CBRE Group shares are held by institutional investors. 1.0% of CBRE Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

CBRE Group beats American Farmland on 7 of the 8 factors compared between the two stocks.

CBRE Group Company Profile

CBRE Group, Inc. is a holding company that conducts all of its operations through its subsidiaries. The Company operates as a commercial real estate services and investment company. The Company operates through the segments: The Americas; Europe, Middle East and Africa (EMEA); Asia Pacific; Global Investment Management, and Development Services. The Company provides commercial real estate services under the CBRE brand name, investment management services under the CBRE Global Investors brand name and development services under the Trammell Crow Company brand name. The Company’s business is focused on commercial property, corporate facilities, project and transaction management, tenant/occupier and property/agency leasing, capital markets solutions (property sales, commercial mortgage brokerage, loan origination and servicing) real estate investment management, valuation, development services and proprietary research.

American Farmland Company Profile

American Farmland Company is an internally managed real estate company. The Company owns a portfolio of farmland, consisting of mature permanent, specialty/vegetable row and commodity row crop farms, including farmland in development, located in select major agricultural regions in the United States. It operates through four segments: Permanent Crop, Specialty/Vegetable Row Crop, Commodity Row Crop and Development. Permanent Crop consists of its Kimberly Vineyard, Golden Eagle Ranch, Quail Run Vineyard, Blue Heron Farms, Falcon Farms and Kingfisher Ranch properties. Specialty/Vegetable Row Crop consists of its Sandpiper Ranch and Sweetwater Farm properties. Commodity Row Crop consists of its Pleasant Plains Farm, Macomb Farm, Kane County Farms and Tillar Farm. Development consists of its Blue Cypress Farm, Roadrunner Ranch, Condor Ranch (of which over 68 mature acres are subject to participating leases), Grassy Island Groves, Pintail Vineyards and Hawk Creek Ranch properties.

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