Realogy (NYSE: RLGY) and Jones Lang LaSalle (NYSE:JLL) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
92.3% of Jones Lang LaSalle shares are held by institutional investors. 0.8% of Realogy shares are held by insiders. Comparatively, 0.7% of Jones Lang LaSalle shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations for Realogy and Jones Lang LaSalle, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jones Lang LaSalle||0||6||5||0||2.45|
Realogy currently has a consensus target price of $33.00, suggesting a potential upside of 25.81%. Jones Lang LaSalle has a consensus target price of $157.22, suggesting a potential downside of 9.13%. Given Realogy’s higher possible upside, equities analysts plainly believe Realogy is more favorable than Jones Lang LaSalle.
This table compares Realogy and Jones Lang LaSalle’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jones Lang LaSalle||3.20%||13.55%||5.46%|
Realogy pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Jones Lang LaSalle pays an annual dividend of $0.74 per share and has a dividend yield of 0.4%. Realogy pays out 22.9% of its earnings in the form of a dividend. Jones Lang LaSalle pays out 8.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Jones Lang LaSalle has raised its dividend for 7 consecutive years.
Earnings & Valuation
This table compares Realogy and Jones Lang LaSalle’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Realogy||$6.11 billion||0.56||$431.00 million||$1.57||16.71|
|Jones Lang LaSalle||$7.93 billion||0.99||$254.20 million||$9.16||18.89|
Realogy has higher earnings, but lower revenue than Jones Lang LaSalle. Realogy 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.
Risk & Volatility
Realogy has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Jones Lang LaSalle has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Jones Lang LaSalle beats Realogy on 11 of the 16 factors compared between the two stocks.
Realogy Holdings Corp. is an integrated provider of residential real estate services in the United States. The Company is the franchisor of residential real estate brokerages with some of the recognized brands in the real estate industry, the owner of United States residential real estate brokerage offices, the global provider of outsourced employee relocation services and a provider of title and settlement services. The Company’s operating platform is supported by the Company’s portfolio of industry franchise brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby’s International Realty and Better Homes and Gardens Real Estate and the Company also owns and operates the Corcoran Group and CitiHabitats brands. On August 14, 2014, Realogy Holdings Corp, through its Realogy Group LLC wholly owned subsidiary, acquired ZipRealty Inc (ZipRealty).
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.
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