Financial Analysis: Newmark Group (NASDAQ:NMRK) and Maui Land & Pineapple (NYSE:MLP)

Newmark Group (NASDAQ:NMRK) and Maui Land & Pineapple (NYSE:MLP) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Newmark Group and Maui Land & Pineapple’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newmark Group	4.30%	26.23%	8.13%
Maui Land & Pineapple	-23.44%	-12.78%	-8.53%

Institutional & Insider Ownership

58.4% of Newmark Group shares are held by institutional investors. Comparatively, 24.5% of Maui Land & Pineapple shares are held by institutional investors. 3.1% of Newmark Group shares are held by insiders. Comparatively, 68.6% of Maui Land & Pineapple shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Newmark Group and Maui Land & Pineapple”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmark Group	$3.29 billion	0.75	$126.19 million	$0.81	17.25
Maui Land & Pineapple	$17.06 million	19.86	-$10.58 million	($0.20)	-85.25

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

Volatility and Risk

Newmark Group has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Maui Land & Pineapple has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Newmark Group and Maui Land & Pineapple, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmark Group	0	2	5	0	2.71
Maui Land & Pineapple	1	0	0	0	1.00

Newmark Group currently has a consensus price target of $19.63, indicating a potential upside of 40.48%. Given Newmark Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Newmark Group is more favorable than Maui Land & Pineapple.

Summary

Newmark Group beats Maui Land & Pineapple on 12 of the 14 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 Maui Land & Pineapple

Maui Land & Pineapple Co., Inc. is a landholding and operating company, which engages in the development, sale, and management of real estate. It operates through the following segments: Real Estate, Leasing, and Resort Amenities. The Real Estate segment includes land planning and entitlement, development, and sales activities. The Leasing segment consists of residential, resort, commercial, agricultural and industrial land and property leases, licensing of registered trademarks and trade names, and stewardship and conservation efforts. The Resort Amenities segment manages a full-service spa, a beach club, and a private club membership program. The company was founded in 1909 and is headquartered in Maui, HI.