Newmark Group (NASDAQ:NMRK – Get Free Report) and American Strategic Investment (NYSE:NYC – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Risk and Volatility
Newmark Group has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, American Strategic Investment has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.
Valuation and Earnings
This table compares Newmark Group and American Strategic Investment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Newmark Group | $2.75 billion | 1.13 | $61.23 million | $0.57 | 30.26 |
| American Strategic Investment | $61.57 million | 0.39 | -$140.59 million | ($8.78) | -1.03 |
Newmark Group has higher revenue and earnings than American Strategic Investment. American Strategic Investment is trading at a lower price-to-earnings ratio than Newmark Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
58.4% of Newmark Group shares are owned by institutional investors. Comparatively, 48.0% of American Strategic Investment shares are owned by institutional investors. 3.1% of Newmark Group shares are owned by company insiders. Comparatively, 1.7% of American Strategic Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Newmark Group and American Strategic Investment’s 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% |
| American Strategic Investment | -40.92% | -97.07% | -13.64% |
Analyst Recommendations
This is a summary of current recommendations for Newmark Group and American Strategic Investment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Newmark Group | 0 | 2 | 7 | 1 | 2.90 |
| American Strategic Investment | 1 | 0 | 0 | 0 | 1.00 |
Newmark Group presently has a consensus price target of $18.43, indicating a potential upside of 6.83%. Given Newmark Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Newmark Group is more favorable than American Strategic Investment.
Summary
Newmark Group beats American Strategic Investment on 15 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 American Strategic Investment
American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City.
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