Marcus & Millichap, Inc. (MMI) vs Newmark Group, Inc. (NMRK)

Marcus & Millichap, Inc. and Newmark Group, Inc. are both Real Estate Services companies. Newmark Group, Inc. is the larger, with a market value of $2.4B against $1.2B — 2.1× the size. Newmark Group, Inc. trades at the lower P/E: 15.7× against 81.2×. Newmark Group, Inc. grew revenue faster over the last twelve months: 20.8% against 11.9%. Newmark Group, Inc. has the higher net margin (4.11% vs 1.77%) and the higher return on invested capital (7.76% vs 1.61%). Both pay a dividend; Marcus & Millichap, Inc. yields more (1.33% vs 1.14%). Across the 23 metrics below, Newmark Group, Inc. leads on 19 and Marcus & Millichap, Inc. on 4.

Valuation

Metric MMI NMRK Real Estate Services median
P/E 81.24 15.73 16.25
P/S 1.39 0.65 1.12
P/B 1.94 1.34 1.32
Price to free cash flow 13.32 2.92 13.29
EV/EBITDA 48.66 4.57 10.22
EV/Sales 1.22 0.78 1.16
Earnings yield 1.23% 6.36% 0.99%
Free cash flow yield 7.51% 34.19% (0.97%)

Profitability

Metric MMI NMRK Real Estate Services median
Gross margin 37.72% 100.00% 26.81%
Operating margin 1.17% 7.66% 0.00%
Net margin 1.77% 4.11% 0.11%
Free cash flow margin 10.41% 22.13% 0.00%
Return on equity 2.42% 9.12% 0.94%
Return on assets 1.84% 2.80% 0.00%
Return on invested capital 1.61% 7.76% 0.00%

Growth

Metric MMI NMRK Real Estate Services median
Revenue growth (TTM) 11.89% 20.82% 4.33%
EPS growth (last fiscal year) 84.38% 80.38% —
Revenue growth, 5-year CAGR 1.05% 11.57% 4.05%
Net income growth, 5-year CAGR 0.00% 9.53% 0.00%

Health

Metric MMI NMRK Real Estate Services median
Debt to equity 0.00 0.50 0.08
Current ratio 2.92 0.55 1.95
Net debt to EBITDA 156.54 0.57 0.54

Dividend

Metric MMI NMRK Real Estate Services median
Dividend yield 1.33% 1.14% 1.33%
Payout ratio 1.35 0.67 0.00

Size

Metric MMI NMRK Real Estate Services median
Market cap 1.15b 2.37b 218.52m

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