Critical Review: Newmark Group (NASDAQ:NMRK) and Sun Hung Kai Properties (OTCMKTS:SUHJY)

Sun Hung Kai Properties (OTCMKTS:SUHJY) and Newmark Group (NASDAQ:NMRK) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Risk and Volatility

Sun Hung Kai Properties has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Newmark Group has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.

Dividends

Sun Hung Kai Properties pays an annual dividend of $0.21 per share and has a dividend yield of 1.3%. Newmark Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Newmark Group pays out 29.6% of its earnings in the form of a dividend.

Institutional and Insider Ownership

58.4% of Newmark Group shares are held by institutional investors. 3.1% of Newmark Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Sun Hung Kai Properties and Newmark Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Hung Kai Properties	0	2	1	0	2.33
Newmark Group	0	2	5	0	2.71

Newmark Group has a consensus price target of $19.62, indicating a potential upside of 25.80%. Given Newmark Group’s stronger consensus rating and higher possible upside, analysts clearly believe Newmark Group is more favorable than Sun Hung Kai Properties.

Earnings & Valuation

This table compares Sun Hung Kai Properties and Newmark Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sun Hung Kai Properties	$10.23 billion	4.42	$2.48 billion	N/A	N/A
Newmark Group	$3.29 billion	0.84	$126.19 million	$0.81	19.26

Sun Hung Kai Properties has higher revenue and earnings than Newmark Group.

Profitability

This table compares Sun Hung Kai Properties and Newmark Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sun Hung Kai Properties	N/A	N/A	N/A
Newmark Group	4.30%	26.23%	8.13%

Summary

Newmark Group beats Sun Hung Kai Properties on 10 of the 14 factors compared between the two stocks.

About Sun Hung Kai Properties

Sun Hung Kai Properties Limited develops and invests in properties for sale and rent in Hong Kong, Mainland China, and internationally. It develops, sells, and leases properties, including residential estates, offices, shopping malls, industrial offices, and hotels and serviced suites. The company also provides property management services; construction-related services, including landscaping, electrical and mechanical installation, production and installation of wooden doors, and construction plant and machinery leasing; and insurance products to individuals and businesses comprising householder’s comprehensive, fire, employees’ compensation, travel, personal accident, motor vehicles, contractors’ all risks, third party liability, and property all risks. In addition, the company offers voice, multimedia, and mobile broadband services; and data center services, including infrastructure, facility management, server co-location, and other value-added services. Further, it manages car parks, tunnels, and toll roads; facilities management and value-added services; general insurance; offers transport facilities for private and the public sectors; operates an expressway; provides public bus services; and offers airport freight forwarding and aviation support services. Additionally, the company provides container handling and storage, container freight station, and other port-related services; operates department stores and supermarkets; and offers mortgage and other loan financing facilities, as well as offers asset and project management, architectural and engineering, cleaning, and secretarial services. It also engages in the club and road management business. The company was formerly known as Sun Hung Kai (Holdings) Limited and changed its name to Sun Hung Kai Properties Limited in March 1973. The company was incorporated in 1972 and is based in Wan Chai, Hong Kong.

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.