Financial Analysis: CBRE Group (CBG) vs. SouFun Holdings Limited (NYSE:SFUN)
CBRE Group (NYSE: CBG) and SouFun Holdings Limited (NYSE:SFUN) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitabiliy, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Earnings and Valuation
This table compares CBRE Group and SouFun Holdings Limited’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CBRE Group||$13.21 billion||0.97||$1.26 billion||$1.83||20.71|
|SouFun Holdings Limited||$821.57 million||1.69||-$19.98 million||($0.15)||-21.00|
CBRE Group has higher revenue and earnings than SouFun Holdings Limited. SouFun Holdings Limited is trading at a lower price-to-earnings ratio than CBRE Group, indicating that it is currently the more affordable of the two stocks.
This table compares CBRE Group and SouFun Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SouFun Holdings Limited||-8.27%||-14.64%||-4.45%|
Risk & Volatility
CBRE Group has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, SouFun Holdings Limited has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for CBRE Group and SouFun Holdings Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SouFun Holdings Limited||2||3||2||0||2.00|
CBRE Group presently has a consensus target price of $38.67, indicating a potential upside of 2.02%. SouFun Holdings Limited has a consensus target price of $3.63, indicating a potential upside of 15.11%. Given SouFun Holdings Limited’s higher possible upside, analysts plainly believe SouFun Holdings Limited is more favorable than CBRE Group.
Institutional and Insider Ownership
96.1% of CBRE Group shares are held by institutional investors. Comparatively, 50.1% of SouFun Holdings Limited shares are held by institutional investors. 1.0% of CBRE Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
CBRE Group beats SouFun Holdings Limited on 10 of the 12 factors compared between the two stocks.
About CBRE Group
CBRE Group, Inc. is a holding company that conducts all of its operations through its subsidiaries. The Company operates as a commercial real estate services and investment company. The Company operates through the segments: The Americas; Europe, Middle East and Africa (EMEA); Asia Pacific; Global Investment Management, and Development Services. The Company provides commercial real estate services under the CBRE brand name, investment management services under the CBRE Global Investors brand name and development services under the Trammell Crow Company brand name. The Company’s business is focused on commercial property, corporate facilities, project and transaction management, tenant/occupier and property/agency leasing, capital markets solutions (property sales, commercial mortgage brokerage, loan origination and servicing) real estate investment management, valuation, development services and proprietary research.
About SouFun Holdings Limited
Fang Holdings Limited, formerly SouFun Holdings Limited, operates as a real estate Internet portal in China. The Company’s Websites and mobile applications support active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors in China. The Company, through its Internet platform, is engaged in the development of transaction and financing platforms by offering direct sales services for new homes, online real estate brokerage services and financial services. The Company’s service offerings include marketing services, E-commerce services, listing services, Financial services and other value-added services. The Company provides secured loans in the form of entrusted loans and mortgage loans and unsecured loans primarily to home buyers, real estate developers and other borrowers that meet its credit assessment requirements.
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