Contrasting CBRE Group (NYSE:CBRE) & Next (OTCMKTS:NXCLF)

CBRE Group (NYSE:CBRE) and Next (OTCMKTS:NXCLF) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Insider & Institutional Ownership

98.4% of CBRE Group shares are owned by institutional investors. 0.5% of CBRE Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

CBRE Group has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Next has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500.

Valuation and Earnings

This table compares CBRE Group and Next”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBRE Group	$40.55 billion	1.01	$1.16 billion	$4.39	31.78
Next	$188.62 million	1.07	$35.62 million	$0.12	13.17

CBRE Group has higher revenue and earnings than Next. Next is trading at a lower price-to-earnings ratio than CBRE Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CBRE Group and Next, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBRE Group	0	1	8	0	2.89
Next	0	0	0	0	0.00

CBRE Group currently has a consensus price target of $178.86, suggesting a potential upside of 28.22%. Given CBRE Group’s stronger consensus rating and higher probable upside, analysts clearly believe CBRE Group is more favorable than Next.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CBRE Group	3.11%	24.08%	7.29%
Next	11.83%	13.29%	8.71%

Summary

CBRE Group beats Next on 11 of the 14 factors compared between the two stocks.

About CBRE Group

CBRE Group, Inc. operates as a commercial real estate services and investment company in the United States, the United Kingdom, and internationally. The Advisory Services segment offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing of offices, and industrial and retail space; clients fully integrated property sales services under the CBRE Capital Markets brand; clients commercial mortgage and structured financing services; originates and sells commercial mortgage loans; property management services, such as marketing, building engineering, accounting, and financial services on a contractual basis for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment provides facilities management, including day-to-day management of client-occupied space, headquarters, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, and distribution facilities and retail space; and project management services comprising building consulting, program, and project and cost management services under the Turner & Townsend brand name. The Real Estate Investments segment offers investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services, such as real estate development and investment activities under the Trammell Crow Company and Telford Homes brands to users and investors in commercial real estate, and for their own account. CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.

About Next

LIFULL Co.,Ltd. provides real estate information services in Japan and internationally. It offers LIFULL HOME'S, a site of real estate and housing information; LIFULL Revitalize Rural Japan that suggests new lifestyles to people in Japan based on the refurbishment of abandoned houses; LIFULL Move, which provides rankings and reviews of moving companies; LIFULL Nursing Care, a special care facility searching web service; and LIFULL Investment, a money lending website. The company also provides LIFULL FaM that enables working mothers balance childcare with work while pursuing a career; LIFULL Storage, a storage space searching web service; LIFULL HUB, a shared office; LIFULL Fab for design and craftsmanship; and LIFULL Table, a gallery and open space for photography, exhibitions, press releases, and workshops. In addition, it offers LivingAnywhere Commons, a community to live; instant house products; Trovit, an aggregation website providing information on items, including real estate and housing, used cars, recruitment, and mail orders; and Mitula, a site that provides information in real estate and housing, used cars, recruitment, and fashion. The company was formerly known as NEXT Co., Ltd. and changed its name to LIFULL Co.,Ltd. in April 2017. LIFULL Co.,Ltd. was founded in 1995 and is headquartered in Tokyo, Japan.