Newmark Group (NASDAQ:NMRK) and Novation Companies (OTCMKTS:NOVC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional & Insider Ownership
13.2% of Newmark Group shares are owned by institutional investors. Comparatively, 0.6% of Novation Companies shares are owned by institutional investors. 91.0% of Newmark Group shares are owned by company insiders. Comparatively, 17.3% of Novation Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Newmark Group and Novation Companies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Newmark Group presently has a consensus price target of $18.50, suggesting a potential upside of 103.97%. Given Newmark Group’s higher probable upside, equities research analysts plainly believe Newmark Group is more favorable than Novation Companies.
Earnings & Valuation
This table compares Newmark Group and Novation Companies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Newmark Group||$1.60 billion||0.88||$144.49 million||$1.15||7.89|
|Novation Companies||$27.96 million||0.07||-$10.86 million||N/A||N/A|
Newmark Group has higher revenue and earnings than Novation Companies.
This table compares Newmark Group and Novation Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Newmark Group pays an annual dividend of $0.36 per share and has a dividend yield of 4.0%. Novation Companies does not pay a dividend. Newmark Group pays out 31.3% of its earnings in the form of a dividend.
Newmark Group beats Novation Companies on 11 of the 12 factors compared between the two stocks.
About Newmark Group
Newmark Group, Inc. provides commercial real estate services in the United States and internationally. Its investor/owner services and products include capital markets, such as investment sales; and agency leasing, property management, valuation and advisory, and diligence and underwriting, as well as government sponsored enterprise lending, loan servicing, debt and structured finance, and loan sales under the Berkeley Point and NKF Capital Markets names. 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 provides its services to commercial real estate tenants, owner-occupiers, investors, and developers. As of March 9, 2018, Newmark Group, Inc. operated approximately 400 offices in 6 continents. The company was formerly known as Newmark Knight Frank and changed its name to Newmark Group, Inc. in October 2017. 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 Novation Companies
Novation Companies, Inc., through its subsidiary, Healthcare Staffing, Inc., provides outsourced health care staffing and related services primarily to Community Service Boards in Georgia. It also owns a portfolio of mortgage securities. The company was formerly known as NovaStar Financial, Inc. and changed its name to Novation Companies, Inc. in May 2012. Novation Companies, Inc. was founded in 1996 and is based in Kansas City, Missouri.
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