Financial Analysis: Newmark Group (NASDAQ:NMRK) and Santa Fe Financ (OTCMKTS:SFEF)

Santa Fe Financ (OTCMKTS:SFEF) and Newmark Group (NASDAQ:NMRK) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Valuation and Earnings

This table compares Santa Fe Financ and Newmark Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Santa Fe Financ	N/A	N/A	N/A	N/A	N/A
Newmark Group	$2.75 billion	1.12	$61.23 million	$0.57	30.53

Newmark Group has higher revenue and earnings than Santa Fe Financ.

Institutional and Insider Ownership

58.4% of Newmark Group shares are owned by institutional investors. 87.4% of Santa Fe Financ shares are owned by insiders. Comparatively, 32.4% of Newmark Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Santa Fe Financ and Newmark Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Santa Fe Financ	0	0	0	0	0.00
Newmark Group	0	2	5	1	2.88

Newmark Group has a consensus price target of $17.83, indicating a potential upside of 2.49%. Given Newmark Group’s stronger consensus rating and higher possible upside, analysts clearly believe Newmark Group is more favorable than Santa Fe Financ.

Profitability

This table compares Santa Fe Financ and Newmark Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Santa Fe Financ	N/A	N/A	N/A
Newmark Group	3.26%	24.04%	7.37%

Summary

Newmark Group beats Santa Fe Financ on 9 of the 10 factors compared between the two stocks.

About Santa Fe Financ

Santa Fe Financial Corporation owns and operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel property consists of 544 guest rooms and luxury suites, and related facilities, including a five level underground parking garage. The company also owns and operates a 27-unit and a 2-unit multi-family apartment complex located in Los Angeles, California, as well as owns approximately 2 acres of unimproved land for development in Maui, Hawaii. Further, it invests in instruments, corporate debt and equity securities, publicly traded investment funds, mortgage backed securities, securities issued by REIT's, and other companies, which invest primarily in real estate. The company was formerly known as Tri Financial Corporation and changed its name to Santa Fe Financial Corporation in September 1970. The company was founded in 1967 and is based in Los Angeles, California. Santa Fe Financial Corporation is a subsidiary of The InterGroup Corporation.

About Newmark Group

Newmark Group, Inc. provides commercial real estate services in the United States, the United Kingdom, and internationally. The company offers capital markets consisting of investment sales and commercial mortgage brokerage; landlord or agency representation leasing; valuation and advisory; property management; commercial real estate technology platform and capabilities; the United Kingdom business rates services; due diligence, consulting, and other advisory services; GSEs and the Federal Housing Administration lending services comprising multifamily lending and loan servicing; asset management; and flexible workspace solutions for owners. It also provides tenant representation leasing; and global corporate services consisting of workplace and occupancy strategy, energy and sustainability services, technology, project management, real estate and lease administration, and facilities management. The company offers its services to commercial real estate tenants, investors, owners, occupiers, and developers; lenders; small and medium size businesses; and multi-national corporations. The company was formerly known as Newmark Grubb Knight Frank Capital Group and changed its name to Newmark Group, Inc. in October 2017. Newmark Group, Inc. was founded in 1929 and is based in New York, New York. Newmark Group, Inc.operates is a subsidiary of Cantor Fitzgerald, L.P.