Head to Head Survey: Stratus Properties (NASDAQ:STRS) and Newmark Group (NASDAQ:NMRK)

Stratus Properties (NASDAQ:STRS) and Newmark Group (NASDAQ:NMRK) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

61.6% of Stratus Properties shares are owned by institutional investors. Comparatively, 58.4% of Newmark Group shares are owned by institutional investors. 10.0% of Stratus Properties shares are owned by insiders. Comparatively, 3.1% of Newmark Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Stratus Properties and Newmark Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stratus Properties	0	1	0	0	2.00
Newmark Group	0	2	6	0	2.75

Newmark Group has a consensus price target of $18.50, suggesting a potential upside of 15.34%. Given Newmark Group’s stronger consensus rating and higher possible upside, analysts plainly believe Newmark Group is more favorable than Stratus Properties.

Risk and Volatility

Stratus Properties has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Newmark Group has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Valuation & Earnings

This table compares Stratus Properties and Newmark Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stratus Properties	$29.91 million	8.08	$11.98 million	$1.46	20.74
Newmark Group	$3.29 billion	0.90	$126.19 million	$0.81	19.80

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

Profitability

This table compares Stratus Properties and Newmark Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stratus Properties	40.06%	3.66%	2.13%
Newmark Group	4.30%	26.46%	8.12%

Summary

Newmark Group beats Stratus Properties on 8 of the 14 factors compared between the two stocks.

About Stratus Properties

Stratus Properties Inc., a real estate company, engages in the entitlement, development, management, leasing, and sale of multi and single family residential and commercial real estate properties in the Austin, Texas area and other select markets in Texas. The company operates in two segments, Real Estate Operations and Leasing Operations. Its leasing operations cover lease of space at retail and mixed-use and multi-family properties. The company was incorporated in 1992 and is headquartered in Austin, Texas.

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.