HFF (NYSE: HF) and Colliers International Group (NASDAQ:CIGI) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitabiliy, earnings, risk, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
HFF 15.51% 40.20% 8.06%
Colliers International Group 3.23% 49.70% 8.55%

Risk & Volatility

HFF has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Colliers International Group has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for HFF and Colliers International Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HFF 1 2 1 0 2.00
Colliers International Group 0 1 5 0 2.83

HFF currently has a consensus price target of $28.00, suggesting a potential downside of 25.49%. Colliers International Group has a consensus price target of $68.88, suggesting a potential upside of 32.32%. Given Colliers International Group’s stronger consensus rating and higher possible upside, analysts clearly believe Colliers International Group is more favorable than HFF.

Dividends

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

Insider and Institutional Ownership

87.8% of HFF shares are held by institutional investors. Comparatively, 59.4% of Colliers International Group shares are held by institutional investors. 5.7% of HFF 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, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares HFF and Colliers International Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HFF $545.35 million 2.66 $84.87 million $2.20 17.08
Colliers International Group $2.01 billion 1.01 $209.86 million $1.66 31.36

Colliers International Group has higher revenue and earnings than HFF. HFF 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.

Summary

Colliers International Group beats HFF on 11 of the 16 factors compared between the two stocks.

About HFF

HFF, Inc. is a holding company. The Company holds the partnership interests in Holliday Fenoglio Fowler, L.P. and HFF Securities L.P. (together, the Operating Partnerships), held through the subsidiary HFF Partnership Holdings, LLC, and all of the outstanding shares of Holliday GP Corp. (Holliday GP). The Company operates through the commercial real estate financial intermediary segment. It offers debt placement, investment sales, distressed debt and real estate owned advisory services, equity placement, investment banking and advisory services, loan sales and commercial loan servicing. Its fully-integrated national capital markets platform, coupled with its knowledge of the commercial real estate markets provides an range of capital markets services, including Debt placement; Investment sales; Distressed debt and real estate owned advisory services; Equity placement; Investment banking and advisory services; Loan sales; and Commercial loan servicing.

About Colliers International Group

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.

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