CBRE Group (NYSE:CBRE) vs. Grainger (OTC:GRGTF) Critical Survey

Grainger (OTC:GRGTF) and CBRE Group (NYSE:CBRE) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Earnings & Valuation

This table compares Grainger and CBRE Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grainger	N/A	N/A	N/A	$0.18	18.88
CBRE Group	$33.14 billion	1.15	$986.00 million	$3.21	38.77

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Grainger and CBRE Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grainger	0	0	0	0	N/A
CBRE Group	0	4	1	2	2.71

CBRE Group has a consensus price target of $113.83, indicating a potential downside of 8.53%. Given CBRE Group’s higher probable upside, analysts plainly believe CBRE Group is more favorable than Grainger.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grainger	N/A	N/A	N/A
CBRE Group	2.79%	12.74%	5.03%

Insider & Institutional Ownership

98.4% of CBRE Group shares are held by institutional investors. 0.5% of CBRE Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

CBRE Group beats Grainger on 11 of the 11 factors compared between the two stocks.

About Grainger

Grainger plc, together with its subsidiaries, owns, operates, and manages private rental homes in the United Kingdom. The company was formerly known as Grainger Trust Plc and changed the name to Grainger Plc in March 2007. Grainger plc was incorporated in 1912 and is headquartered in Newcastle upon Tyne, the United Kingdom.

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.