Analyzing Star (NASDAQ:STHO) and Newmark Group (NASDAQ:NMRK)

Newmark Group (NASDAQ:NMRK) and Star (NASDAQ:STHO) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmark Group	$2.98 billion	1.05	$61.23 million	$0.42	42.07
Star	$113.30 million	0.95	-$86.75 million	($4.32)	-1.87

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Newmark Group	2.51%	22.73%	6.91%
Star	-50.51%	-32.44%	-18.41%

Insider & Institutional Ownership

58.4% of Newmark Group shares are owned by institutional investors. Comparatively, 89.3% of Star shares are owned by institutional investors. 32.4% of Newmark Group shares are owned by insiders. Comparatively, 3.7% of Star shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Newmark Group has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Star has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Newmark Group and Star, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmark Group	0	2	5	1	2.88
Star	1	0	0	0	1.00

Newmark Group presently has a consensus price target of $16.83, indicating a potential downside of 4.73%. Given Newmark Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Newmark Group is more favorable than Star.

Summary

Newmark Group beats Star on 14 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 Star

Star Holdings engages in the non-ground lease related commercial real estate businesses in the United States. Its portfolio primarily comprises interest in the Asbury Park Waterfront and Magnolia Green residential development projects. Star Holdings is based in New York, New York.