Head-To-Head Contrast: Safestore (OTCMKTS:SFSHF) and Newmark Group (NASDAQ:NMRK)

Newmark Group (NASDAQ:NMRK) and Safestore (OTCMKTS:SFSHF) are both real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Newmark Group	4.11%	27.30%	8.73%
Safestore	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for Newmark Group and Safestore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newmark Group	0	1	5	1	3.00
Safestore	2	1	1	0	1.75

Newmark Group presently has a consensus price target of $20.10, suggesting a potential upside of 41.65%. Given Newmark Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Newmark Group is more favorable than Safestore.

Institutional & Insider Ownership

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

Valuation & Earnings

This table compares Newmark Group and Safestore”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newmark Group	$3.29 billion	0.76	$126.19 million	$0.81	17.52
Safestore	$306.59 million	5.61	$145.42 million	N/A	N/A

Safestore has lower revenue, but higher earnings than Newmark Group.

Risk and Volatility

Newmark Group has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Safestore has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Summary

Newmark Group beats Safestore on 11 of the 13 factors compared between the two stocks.

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.

About Safestore

Safestore is the UK’s largest self storage group with 190 stores on 31 October 2023, comprising 133 wholly owned stores in the UK (including 73 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool, Sheffield, Leeds, Newcastle, and Bristol), 29 wholly owned stores in the Paris region, 11 stores in Spain, 11 stores in the Netherlands and 6 stores in Belgium. In addition, the Group operates 7 stores in Germany under a Joint Venture agreement with Carlyle. Safestore operates more self storage sites inside the M25 and in central Paris than any competitor providing more proximity to customers in the wealthiest and more densely populated UK and French markets. Safestore was founded in the UK in 1998. It acquired the French business “Une Pièce en Plus” (“UPP”) in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli. Safestore has been listed on the London Stock Exchange since 2007. It entered the FTSE 250 index in October 2015. The Group provides storage to around 90,000 personal and business customers. As of 31 October 2023, Safestore had a maximum lettable area (“MLA”) of 8.090 million sq ft (excluding the expansion pipeline stores) of which 6.231 million sq ft was occupied. Safestore employs around 750 people in the UK, Paris, Spain, the Netherlands, and Belgium.