Newmark Group (NMRK) versus Interval Leisure Group (ILG) Critical Analysis

Newmark Group (NASDAQ: NMRK) and Interval Leisure Group (NASDAQ:ILG) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Newmark Group N/A N/A N/A
Interval Leisure Group 9.35% 8.41% 3.95%

Insider and Institutional Ownership

12.5% of Newmark Group shares are owned by institutional investors. Comparatively, 84.1% of Interval Leisure Group shares are owned by institutional investors. 2.0% of Interval Leisure Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Newmark Group and Interval Leisure Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newmark Group $1.60 billion 1.50 $144.49 million $1.15 13.44
Interval Leisure Group $1.79 billion 2.29 $168.00 million $1.10 29.99

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

Dividends

Interval Leisure Group pays an annual dividend of $0.70 per share and has a dividend yield of 2.1%. Newmark Group does not pay a dividend. Interval Leisure Group pays out 63.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Newmark Group and Interval Leisure Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newmark Group 0 1 5 0 2.83
Interval Leisure Group 0 1 6 0 2.86

Newmark Group currently has a consensus target price of $20.08, indicating a potential upside of 29.91%. Interval Leisure Group has a consensus target price of $32.83, indicating a potential downside of 0.47%. Given Newmark Group’s higher probable upside, research analysts plainly believe Newmark Group is more favorable than Interval Leisure Group.

Summary

Interval Leisure Group beats Newmark Group on 11 of the 14 factors compared between the two stocks.

About Newmark Group

Newmark Group, Inc. provides commercial real estate services in the United States. Its investor/owner services and products include capital markets, which consist of investment sales, debt and structured finance and loan sales, agency leasing, property management, valuation and advisory, and loan servicing; and diligence and underwriting and government sponsored entity lending. The company's occupier services and products comprise tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration, and facilities management. It serves occupiers/real estate tenants, owners/landlords, and developers of real estate in the United States; and corporations and institutional investors internationally. The company was founded in 1929 and is headquartered in New York, New York. Newmark Group, Inc. is a subsidiary of BGC Partners, Inc.

About Interval Leisure Group

ILG, Inc., together with its subsidiaries, provides professional vacation services in the United States and internationally. The company operates in two segments, Vacation Ownership (VO), and Exchange and Rental. The VO segment engages in the sale, marketing, financing, and development of vacation ownership interests; and management of vacation ownership resorts, as well as in the provision of related services to owners and homeowners' associations (HOAs). The Exchange and Rental segment offers access to vacation accommodations and other travel-related transactions and services to leisure travelers by providing vacation exchange and rental services. This segment also provides leisure and travel related products and services to owners of vacation interests and others primarily through various membership programs, as well as related services to resort developer clients and HOAs; and allows owners of vacation interests to exchange their occupancy rights for alternative accommodations at another resort and/or occupancy period. In addition, this segment offers vacation property rental services for condominium owners, hotel owners, and HOAs. As of December 31, 2017, it operated a total of 43 resorts within Vistana Signature Experiences and Hyatt Vacation Ownership businesses; and managed approximately 250 resorts, vacation ownership properties, and/or their associations. The company was formerly known as Interval Leisure Group, Inc. and changed its name to ILG, Inc. in October 2016. ILG, Inc. was founded in 1976 and is headquartered in Miami, Florida.

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