Newmark Group (NASDAQ:NMRK) vs. City Developments (OTCMKTS:CDEVY) Critical Review

City Developments (OTCMKTS:CDEVY) and Newmark Group (NASDAQ:NMRK) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares City Developments and Newmark Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City Developments	N/A	N/A	N/A
Newmark Group	3.26%	23.69%	7.20%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for City Developments and Newmark Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City Developments	0	0	1	0	3.00
Newmark Group	0	2	7	1	2.90

Newmark Group has a consensus target price of $18.29, indicating a potential upside of 3.25%. Given Newmark Group’s higher probable upside, analysts clearly believe Newmark Group is more favorable than City Developments.

Earnings & Valuation

This table compares City Developments and Newmark Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City Developments	$2.45 billion	2.22	$150.66 million	N/A	N/A
Newmark Group	$2.75 billion	1.16	$61.23 million	$0.57	31.07

City Developments has higher earnings, but lower revenue than Newmark Group.

Dividends

City Developments pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. Newmark Group pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. Newmark Group pays out 21.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

58.4% of Newmark Group shares are held by institutional investors. 3.1% of Newmark Group shares are held 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.

Risk and Volatility

City Developments has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Newmark Group has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.

Summary

Newmark Group beats City Developments on 11 of the 15 factors compared between the two stocks.

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.

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.