Head to Head Survey: Grainger (OTC:GRGTF) & CBRE Group (NYSE:CBRE)

by · The Markets Daily

CBRE Group (NYSE:CBREGet Free Report) and Grainger (OTC:GRGTFGet Free Report) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Institutional and Insider Ownership

98.4% of CBRE Group shares are owned by institutional investors. 0.5% of CBRE Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CBRE Group and Grainger, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
CBRE Group04122.71
Grainger0000N/A

CBRE Group presently has a consensus price target of $113.83, indicating a potential downside of 4.75%. Given CBRE Group’s higher probable upside, research analysts clearly believe CBRE Group is more favorable than Grainger.

Earnings & Valuation

This table compares CBRE Group and Grainger”s top-line revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
CBRE Group$33.14 billion1.11$986.00 million$3.2137.23
GraingerN/AN/AN/A$0.1818.88

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

Profitability

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

Net MarginsReturn on EquityReturn on Assets
CBRE Group2.79%12.74%5.03%
GraingerN/AN/AN/A

Summary

CBRE Group beats Grainger on 11 of the 11 factors compared between the two stocks.

About CBRE Group

(Get Free Report)

CBRE Group, Inc. operates as a commercial real estate services and investment company in the United States, the United Kingdom, and internationally. The Advisory Services segment offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing of offices, and industrial and retail space; clients fully integrated property sales services under the CBRE Capital Markets brand; clients commercial mortgage and structured financing services; originates and sells commercial mortgage loans; property management services, such as marketing, building engineering, accounting, and financial services on a contractual basis for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment provides facilities management, including day-to-day management of client-occupied space, headquarters, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, and distribution facilities and retail space; and project management services comprising building consulting, program, and project and cost management services under the Turner & Townsend brand name. The Real Estate Investments segment offers investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services, such as real estate development and investment activities under the Trammell Crow Company and Telford Homes brands to users and investors in commercial real estate, and for their own account. CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.

About Grainger

(Get Free Report)

Grainger plc, together with its subsidiaries, owns, operates, and manages private rental homes in the United Kingdom. The company was formerly known as Grainger Trust Plc and changed the name to Grainger Plc in March 2007. Grainger plc was incorporated in 1912 and is headquartered in Newcastle upon Tyne, the United Kingdom.