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 investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Insider & Institutional 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 insiders. Comparatively, 16.7% of Offerpad Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
CBRE Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Offerpad Solutions has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.
Valuation and Earnings
| 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.
Analyst Ratings
This is a summary of current ratings and target prices for CBRE Group and Offerpad Solutions, as reported by MarketBeat.com.
| 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 presently 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 plainly believe Offerpad Solutions is more favorable than CBRE Group.
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% |
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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