Jones Lang LaSalle (NYSE: JLL) and Nationstar Mortgage Holdings (NYSE:NSM) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Jones Lang LaSalle pays an annual dividend of $0.70 per share and has a dividend yield of 0.5%. Nationstar Mortgage Holdings does not pay a dividend. Jones Lang LaSalle pays out 9.4% of its earnings in the form of a dividend. Jones Lang LaSalle has increased its dividend for 6 consecutive years.
Institutional & Insider Ownership
90.3% of Jones Lang LaSalle shares are held by institutional investors. Comparatively, 97.9% of Nationstar Mortgage Holdings shares are held by institutional investors. 0.7% of Jones Lang LaSalle shares are held by company insiders. Comparatively, 0.8% of Nationstar Mortgage Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Jones Lang LaSalle has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Nationstar Mortgage Holdings has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.
Earnings and Valuation
This table compares Jones Lang LaSalle and Nationstar Mortgage Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Jones Lang LaSalle||$6.80 billion||0.97||$318.20 million||$7.46||19.54|
|Nationstar Mortgage Holdings||$1.93 billion||0.84||$19.00 million||$1.90||8.73|
Jones Lang LaSalle has higher revenue and earnings than Nationstar Mortgage Holdings. Nationstar Mortgage Holdings is trading at a lower price-to-earnings ratio than Jones Lang LaSalle, indicating that it is currently the more affordable of the two stocks.
This table compares Jones Lang LaSalle and Nationstar Mortgage Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jones Lang LaSalle||4.52%||12.55%||4.93%|
|Nationstar Mortgage Holdings||9.34%||8.88%||0.80%|
This is a summary of current ratings and target prices for Jones Lang LaSalle and Nationstar Mortgage Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jones Lang LaSalle||0||3||4||0||2.57|
|Nationstar Mortgage Holdings||2||3||5||0||2.30|
Jones Lang LaSalle presently has a consensus price target of $131.80, indicating a potential downside of 9.58%. Nationstar Mortgage Holdings has a consensus price target of $18.33, indicating a potential upside of 10.51%. Given Nationstar Mortgage Holdings’ higher probable upside, analysts plainly believe Nationstar Mortgage Holdings is more favorable than Jones Lang LaSalle.
Jones Lang LaSalle beats Nationstar Mortgage Holdings on 11 of the 17 factors compared between the two stocks.
About Jones Lang LaSalle
Jones Lang LaSalle Incorporated (JLL) is a financial and professional services company specializing in real estate. The Company operates through four business segments: Americas; Europe, Middle East and Africa (EMEA); Asia Pacific, and LaSalle. It offers integrated services on a local, regional and global basis to owner, occupier, investor and developer clients. It delivers various real estate services (RES) across three geographic business segments: the Americas, EMEA and Asia Pacific. Its RES is organized into five product categories: leasing; capital markets and hotels; property and facility management; project and development services, and advisory, consulting and other services. LaSalle offers clients with real estate investment products and services, such as private investments in multiple real estate property types, including office, industrial, healthcare and multifamily residential. LaSalle enables clients to invest in separate accounts focused on public real estate equities.
About Nationstar Mortgage Holdings
Nationstar Mortgage Holdings Inc. provides servicing, origination and transaction based services principally to single-family residences throughout the United States. The Company operates through three segments: Servicing, Originations and Xome. The Company provides residential loan services in the United States. The Company also operates an integrated residential loan origination platform that is primarily focused on customer retention. Its Xome subsidiary offers an array of complementary services related to the purchase and disposition of residential real estate. It provides non-bank services and residential mortgage services in the United States conducting operations through its Nationstar Mortgage and Champion Mortgage brands. It originates and purchases conventional mortgage loans conforming to the underwriting standards of the government sponsored entities, which it collectively refers to as Agency loans. The Xome segment is a provider of technology and data-enhanced solutions.
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