CBRE Group (NYSE: CBG) and Jones Lang LaSalle (NYSE:JLL) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.
Jones Lang LaSalle pays an annual dividend of $0.74 per share and has a dividend yield of 0.5%. CBRE Group does not pay a dividend. Jones Lang LaSalle pays out 9.9% of its earnings in the form of a dividend. CBRE Group has raised its dividend for 6 consecutive years.
Insider and Institutional Ownership
95.0% of CBRE Group shares are held by institutional investors. Comparatively, 91.2% of Jones Lang LaSalle shares are held by institutional investors. 1.0% of CBRE Group shares are held by insiders. Comparatively, 0.7% of Jones Lang LaSalle shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares CBRE Group and Jones Lang LaSalle’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CBRE Group||$13.07 billion||1.13||$571.97 million||$2.32||18.77|
|Jones Lang LaSalle||$6.80 billion||1.00||$318.20 million||$7.46||20.03|
CBRE Group has higher revenue and earnings than Jones Lang LaSalle. CBRE Group is trading at a lower price-to-earnings ratio than Jones Lang LaSalle, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
CBRE Group has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Jones Lang LaSalle has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.
This table compares CBRE Group and Jones Lang LaSalle’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jones Lang LaSalle||4.52%||12.55%||4.93%|
This is a breakdown of recent ratings and target prices for CBRE Group and Jones Lang LaSalle, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jones Lang LaSalle||0||3||4||0||2.57|
CBRE Group presently has a consensus target price of $40.25, suggesting a potential downside of 7.58%. Jones Lang LaSalle has a consensus target price of $131.80, suggesting a potential downside of 11.81%. Given CBRE Group’s stronger consensus rating and higher probable upside, analysts plainly believe CBRE Group is more favorable than Jones Lang LaSalle.
CBRE Group beats Jones Lang LaSalle on 12 of the 17 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 Jones Lang LaSalle
Jones Lang LaSalle Incorporated (JLL) is a financial and professional services company specializing in real estate. The Company operates through four business segments: Americas; Europe, Middle East and Africa (EMEA); Asia Pacific, and LaSalle. It offers integrated services on a local, regional and global basis to owner, occupier, investor and developer clients. It delivers various real estate services (RES) across three geographic business segments: the Americas, EMEA and Asia Pacific. Its RES is organized into five product categories: leasing; capital markets and hotels; property and facility management; project and development services, and advisory, consulting and other services. LaSalle offers clients with real estate investment products and services, such as private investments in multiple real estate property types, including office, industrial, healthcare and multifamily residential. LaSalle enables clients to invest in separate accounts focused on public real estate equities.
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