Newmark Group (NASDAQ: NMRK) and Kennedy-Wilson (NYSE:KW) are both mid-cap financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Earnings and Valuation

This table compares Newmark Group and Kennedy-Wilson’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newmark Group N/A N/A N/A $1.17 13.73
Kennedy-Wilson $703.40 million 3.71 $5.59 million $0.13 132.70

Kennedy-Wilson has higher revenue and earnings than Newmark Group. Newmark 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.

Institutional and Insider Ownership

66.6% of Kennedy-Wilson shares are held by institutional investors. 17.1% of Kennedy-Wilson shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Newmark Group and Kennedy-Wilson, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newmark Group 0 1 4 0 2.80
Kennedy-Wilson 0 2 2 0 2.50

Newmark Group currently has a consensus price target of $19.90, indicating a potential upside of 23.91%. Kennedy-Wilson has a consensus price target of $28.33, indicating a potential upside of 64.25%. Given Kennedy-Wilson’s higher possible upside, analysts clearly believe Kennedy-Wilson is more favorable than Newmark Group.

Profitability

This table compares Newmark Group and Kennedy-Wilson’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newmark Group N/A N/A N/A
Kennedy-Wilson 1.94% 2.04% 0.60%

Dividends

Kennedy-Wilson pays an annual dividend of $0.76 per share and has a dividend yield of 4.4%. Newmark Group does not pay a dividend. Kennedy-Wilson pays out 584.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Newmark Group has raised its dividend for 7 consecutive years.

Summary

Kennedy-Wilson beats Newmark Group on 9 of the 14 factors compared between the two stocks.

About Newmark Group

Newmark Group, Inc. is a commercial real estate services company. The Company is focused on offering products and services to both owners and occupiers across the entire commercial real estate industry. Its investor/owner services and products include capital markets, which consists of investment sales, debt and structured finance and loan sales, agency leasing, property management, valuation and advisory, diligence and underwriting and government-sponsored enterprise lending and loan servicing. Its occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management.

About Kennedy-Wilson

Kennedy-Wilson Holdings, Inc. is a real estate investment company. The Company owns, operates, and invests in real estate both on its own and through its investment management platform. The Company focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy and Japan. The Company’s segments include KW Investments, and KW Investment Management and Real Estate Services (IMRES). KW Investments invests in multifamily, residential and commercial properties, as well as loans secured by real estate. IMRES provides real estate-related services to investors and lenders, with a focus on financial institution-based clients. As of December 31, 2016, the Company had an ownership interest in approximately 39 million square feet of property globally, including 25,943 multifamily rental units.

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