CBRE Group (NYSE:CBRE – Get Free Report) and Offerpad Solutions (NYSE:OPAD – Get Free Report) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for CBRE Group and Offerpad Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CBRE Group | 0 | 1 | 7 | 0 | 2.88 |
| Offerpad Solutions | 1 | 1 | 1 | 0 | 2.00 |
CBRE Group currently has a consensus price target of $180.33, indicating a potential upside of 40.14%. Offerpad Solutions has a consensus price target of $24.83, indicating a potential upside of 650.25%. Given Offerpad Solutions’ higher probable upside, analysts clearly believe Offerpad Solutions is more favorable than CBRE Group.
Volatility & Risk
Profitability
This table compares CBRE Group and Offerpad Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CBRE Group | 2.98% | 25.12% | 7.46% |
| Offerpad Solutions | -9.85% | -99.08% | -23.21% |
Earnings & Valuation
This table compares CBRE Group and Offerpad Solutions”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CBRE Group | $43.71 billion | 0.85 | $1.16 billion | $4.36 | 29.51 |
| Offerpad Solutions | $404.53 million | 0.04 | -$46.38 million | ($10.24) | -0.32 |
CBRE Group has higher revenue and earnings than Offerpad Solutions. Offerpad Solutions is trading at a lower price-to-earnings ratio than CBRE Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
98.4% of CBRE Group shares are held by institutional investors. Comparatively, 39.4% of Offerpad Solutions shares are held by institutional investors. 0.5% of CBRE Group shares are held by company insiders. Comparatively, 16.7% of Offerpad Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
CBRE Group beats Offerpad Solutions on 11 of the 14 factors compared between the two stocks.
About CBRE Group
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 Offerpad Solutions
Offerpad Solutions Inc., together with its subsidiaries, provides technology-enabled solutions for residential real estate market in the United States. It operates iBuying, a real estate solutions platform for on-demand customer that provides home buyers the opportunity to browse and tour homes online. It buys and sells homes through cash offer and listing services. In addition, the company offers renovation services; and ancillary products and services, including mortgage, title insurance, and escrow services, as well as Offerpad Bundle Rewards program that allows customers to receive various discounts when selling and buying a home. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.
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