Comparing Exp World (NASDAQ:EXPI) & CBRE Group (NYSE:CBRE)

CBRE Group (NYSE:CBRE) and Exp World (NASDAQ:EXPI) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

CBRE Group has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Exp World has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500.

Valuation and Earnings

This table compares CBRE Group and Exp World”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBRE Group	$40.55 billion	0.96	$1.16 billion	$3.86	34.20
Exp World	$4.77 billion	0.20	-$22.71 million	($0.14)	-42.21

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

Institutional and Insider Ownership

98.4% of CBRE Group shares are held by institutional investors. Comparatively, 27.2% of Exp World shares are held by institutional investors. 0.4% of CBRE Group shares are held by company insiders. Comparatively, 26.6% of Exp World shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CBRE Group	2.85%	21.75%	6.76%
Exp World	-0.48%	-10.00%	-5.00%

Analyst Recommendations

This is a summary of current ratings and price targets for CBRE Group and Exp World, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBRE Group	0	1	7	0	2.88
Exp World	2	1	1	0	1.75

CBRE Group currently has a consensus target price of $179.86, suggesting a potential upside of 36.25%. Exp World has a consensus target price of $7.88, suggesting a potential upside of 33.25%. Given CBRE Group’s stronger consensus rating and higher probable upside, analysts clearly believe CBRE Group is more favorable than Exp World.

Summary

CBRE Group beats Exp World on 12 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 Exp World

eXp World Holdings, Inc., together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through North American Realty, International Realty, Virbela, and Other Affiliated Services segments. It provides Virbela, a cloud-based technologies that provides data, lead generation, and marketing tools for real estate agents and employees. In addition, the company offers SUCCESS print magazine, SUCCESS.com portal, SUCCESS newsletters, SUCCESS podcasts, SUCCESS plus, SUCCESS speakers bureau, and SUCCESS coaching, podcasts, and digital training courses. It operates in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, and Poland. The company was formerly known as eXp Realty International Corporation and changed its name to eXp World Holdings, Inc. in May 2016. eXp World Holdings, Inc. was incorporated in 2008 and is based in Bellingham, Washington.