Critical Review: CBRE Group (NYSE:CBRE) and PURPLEBRICKS GP (OTCMKTS:PRPPF)

CBRE Group (NYSE:CBRE) and PURPLEBRICKS GP (OTCMKTS:PRPPF) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CBRE Group	2.86%	18.89%	6.58%
PURPLEBRICKS GP	N/A	N/A	N/A

Valuation and Earnings

This table compares CBRE Group and PURPLEBRICKS GP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CBRE Group	$35.77 billion	1.30	$968.00 million	$3.57	43.73
PURPLEBRICKS GP	N/A	N/A	N/A	N/A	N/A

CBRE Group has higher revenue and earnings than PURPLEBRICKS GP.

Insider & Institutional Ownership

98.4% of CBRE Group shares are held by institutional investors. 0.4% of CBRE Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for CBRE Group and PURPLEBRICKS GP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CBRE Group	0	2	8	0	2.80
PURPLEBRICKS GP	0	0	0	0	0.00

CBRE Group presently has a consensus price target of $165.22, suggesting a potential upside of 5.83%. Given CBRE Group’s stronger consensus rating and higher probable upside, research analysts clearly believe CBRE Group is more favorable than PURPLEBRICKS GP.

Summary

CBRE Group beats PURPLEBRICKS GP on 9 of the 9 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 PURPLEBRICKS GP

Bricks Newco Limited engages in the real estate agency business in the United Kingdom. The company provides services and technology to sell or let residential properties in the United Kingdom on behalf of the owner or landlord. It also engages in the letting of residential properties; and the provision of mortgage advisory services. The company offers its services under the Purplebricks brand name. Bricks Newco Limited was incorporated in 2012 and is based in Solihull, the United Kingdom.