CBRE Group (NYSE: CBG) and HFF (NYSE:HF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations and price targets for CBRE Group and HFF, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBRE Group 0 1 2 0 2.67
HFF 1 2 1 0 2.00

CBRE Group presently has a consensus target price of $39.00, suggesting a potential upside of 4.17%. HFF has a consensus target price of $28.00, suggesting a potential downside of 25.41%. Given CBRE Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe CBRE Group is more favorable than HFF.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CBRE Group $13.34 billion 0.95 $1.26 billion $2.05 18.26
HFF $542.82 million 2.67 $84.87 million $2.20 17.06

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

Insider and Institutional Ownership

95.7% of CBRE Group shares are owned by institutional investors. Comparatively, 87.1% of HFF shares are owned by institutional investors. 1.0% of CBRE Group shares are owned by insiders. Comparatively, 5.7% of HFF shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

CBRE Group has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, HFF has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
CBRE Group 5.21% 26.40% 8.08%
HFF 15.51% 40.20% 8.06%

Summary

CBRE Group beats HFF on 9 of the 14 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 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.

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