Newmark Group, Inc. (NMRK) vs Opendoor Technologies Inc. (OPEN)

Newmark Group, Inc. and Opendoor Technologies Inc. are both Real Estate Services companies. Newmark Group, Inc. and Opendoor Technologies Inc. are of similar size ($2.3B and $2.2B). Opendoor Technologies Inc. has negative trailing earnings, so its P/E is not meaningful; Newmark Group, Inc. trades at 14.3×. Newmark Group, Inc. grew revenue faster over the last twelve months: 20.8% against −37.2%. Newmark Group, Inc. has the higher net margin (4.11% vs −46.7%) and the higher return on invested capital (7.76% vs −17.1%). Across the 19 metrics below, Newmark Group, Inc. leads on 17 and Opendoor Technologies Inc. on 2.

Valuation

Metric NMRK OPEN Real Estate Services median
P/E 14.29 n/m 16.05
P/S 0.59 0.63 1.05
P/B 1.22 2.24 1.22
Price to free cash flow 2.66 n/m 12.55
EV/EBITDA 4.22 n/m 9.04
EV/Sales 0.72 0.93 1.05
Earnings yield 7.00% (81.60%) 1.04%
Free cash flow yield 37.65% (23.21%) (0.91%)

Profitability

Metric NMRK OPEN Real Estate Services median
Gross margin 100.00% 8.64% 26.81%
Operating margin 7.66% (16.01%) 0.00%
Net margin 4.11% (46.74%) 0.11%
Free cash flow margin 22.13% (14.57%) 0.00%
Return on equity 9.12% (196.89%) 0.94%
Return on assets 2.80% (51.84%) 0.00%
Return on invested capital 7.76% (17.07%) 0.00%

Growth

Metric NMRK OPEN Real Estate Services median
Revenue growth (TTM) 20.82% (37.19%) 4.33%
EPS growth (last fiscal year) 80.38% (203.57%) 32.94%
Revenue growth, 5-year CAGR 11.57% 11.09% 5.09%
Net income growth, 5-year CAGR 9.53% 0.00% 0.00%

Health

Metric NMRK OPEN Real Estate Services median
Debt to equity 0.50 2.14 0.08
Current ratio 0.55 2.94 2.10
Net debt to EBITDA 0.57 (0.05) 0.54

Dividend

Metric NMRK OPEN Real Estate Services median
Dividend yield 1.52% — 1.78%
Payout ratio 0.23 — 0.37

Size

Metric NMRK OPEN Real Estate Services median
Market cap 2.16b 2.25b 207.59m

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