The RMR Group (NASDAQ:RMR) versus Jones Lang LaSalle (NYSE:JLL) Head-To-Head Contrast

Jones Lang LaSalle (NYSE:JLL) and The RMR Group (NASDAQ:RMR) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Profitability

This table compares Jones Lang LaSalle and The RMR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jones Lang LaSalle	3.89%	15.05%	6.42%
The RMR Group	3.10%	2.96%	1.71%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Jones Lang LaSalle and The RMR Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jones Lang LaSalle	0	3	4	1	2.75
The RMR Group	0	2	3	0	2.60

Jones Lang LaSalle presently has a consensus target price of $427.60, indicating a potential upside of 14.98%. The RMR Group has a consensus target price of $21.33, indicating a potential upside of 35.45%. Given The RMR Group’s higher probable upside, analysts plainly believe The RMR Group is more favorable than Jones Lang LaSalle.

Dividends

Jones Lang LaSalle pays an annual dividend of $0.86 per share and has a dividend yield of 0.2%. The RMR Group pays an annual dividend of $1.80 per share and has a dividend yield of 11.4%. Jones Lang LaSalle pays out 3.7% of its earnings in the form of a dividend. The RMR Group pays out 157.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The RMR Group has raised its dividend for 1 consecutive years. The RMR Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Jones Lang LaSalle and The RMR Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jones Lang LaSalle	$28.20 billion	0.60	$792.10 million	$23.11	16.09
The RMR Group	$700.28 million	0.72	$17.60 million	$1.14	13.82

Jones Lang LaSalle has higher revenue and earnings than The RMR Group. The RMR 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.

Insider & Institutional Ownership

94.8% of Jones Lang LaSalle shares are held by institutional investors. Comparatively, 42.3% of The RMR Group shares are held by institutional investors. 0.9% of Jones Lang LaSalle shares are held by company insiders. Comparatively, 54.7% of The RMR Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Jones Lang LaSalle has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, The RMR Group has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Summary

Jones Lang LaSalle beats The RMR Group on 12 of the 18 factors compared between the two stocks.

About Jones Lang LaSalle

Jones Lang LaSalle Incorporated, commonly known as JLL, is a global commercial real estate services and investment management company. It advises businesses, property owners, investors and public-sector organizations on real estate decisions and operations. Its services include leasing and sales, property and facilities management, project and development management, valuation, workplace consulting and capital markets advisory. Through LaSalle Investment Management, JLL also manages real estate investments for institutional and other clients.

About The RMR Group

The RMR Group Inc. is a U.S.-based alternative asset management company that provides management services to real estate and related businesses. Its clients include publicly traded real estate investment trusts, real estate operating companies and private capital vehicles. RMR’s services include property and business management, asset management, leasing, acquisitions and dispositions, financing, development and advisory support. The businesses it manages operate across a range of real estate sectors, including senior living, healthcare, office, industrial and retail.