Nationstar Mortgage Holdings (NYSE: NSM) and Colliers International Group (NASDAQ:CIGI) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitabiliy.

Valuation & Earnings

This table compares Nationstar Mortgage Holdings and Colliers International Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nationstar Mortgage Holdings $1.39 billion 1.24 $223.90 million $2.29 7.72
Colliers International Group $2.01 billion 1.01 $209.86 million $1.66 31.36

Nationstar Mortgage Holdings has higher revenue, but lower earnings than Colliers International Group. Nationstar Mortgage Holdings is trading at a lower price-to-earnings ratio than Colliers International Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Nationstar Mortgage Holdings has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Colliers International Group has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Institutional & Insider Ownership

99.5% of Nationstar Mortgage Holdings shares are held by institutional investors. Comparatively, 59.4% of Colliers International Group shares are held by institutional investors. 0.8% of Nationstar Mortgage Holdings shares are held by company insiders. Comparatively, 15.3% of Colliers International Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Nationstar Mortgage Holdings and Colliers International Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nationstar Mortgage Holdings 10.52% 9.71% 0.87%
Colliers International Group 3.23% 49.70% 8.55%

Analyst Ratings

This is a summary of recent recommendations for Nationstar Mortgage Holdings and Colliers International Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nationstar Mortgage Holdings 2 3 5 0 2.30
Colliers International Group 0 1 5 0 2.83

Nationstar Mortgage Holdings currently has a consensus target price of $18.33, suggesting a potential upside of 3.75%. Colliers International Group has a consensus target price of $68.88, suggesting a potential upside of 32.32%. Given Colliers International Group’s stronger consensus rating and higher probable upside, analysts clearly believe Colliers International Group is more favorable than Nationstar Mortgage Holdings.

Dividends

Colliers International Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Nationstar Mortgage Holdings does not pay a dividend. Colliers International Group pays out 6.0% of its earnings in the form of a dividend.

Summary

Colliers International Group beats Nationstar Mortgage Holdings on 9 of the 15 factors compared between the two stocks.

Nationstar Mortgage Holdings Company Profile

Nationstar Mortgage Holdings Inc. provides servicing, origination and transaction based services principally to single-family residences throughout the United States. The Company operates through three segments: Servicing, Originations and Xome. The Company provides residential loan services in the United States. The Company also operates an integrated residential loan origination platform that is primarily focused on customer retention. Its Xome subsidiary offers an array of complementary services related to the purchase and disposition of residential real estate. It provides non-bank services and residential mortgage services in the United States conducting operations through its Nationstar Mortgage and Champion Mortgage brands. It originates and purchases conventional mortgage loans conforming to the underwriting standards of the government sponsored entities, which it collectively refers to as Agency loans. The Xome segment is a provider of technology and data-enhanced solutions.

Colliers International Group Company Profile

Colliers International Group Inc. is engaged in the provision of commercial real estate services. The Company offers services, including outsourcing and advisory services, lease brokerage and sales brokerage. Its segments include Americas; Europe, Middle East and Africa (EMEA); Asia Pacific, and Corporate. It is engaged in the transaction brokerage business, which provides services in sales and leasing for commercial clients. The Sales and Lease Brokerage Division executes transactions across a client base, including corporations, financial institutions, governments and individuals. It provides services for sales, leases and mortgages in various areas, such as landlord representation, tenant representation, and capital markets and investment services. The Outsourcing and Advisory Services Division provides appraisal and valuation services; facility, property and asset management services; project management services, and research for commercial real estate clients.

Receive News & Ratings for Nationstar Mortgage Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nationstar Mortgage Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.