HFF (NYSE:HF) and MITIE GRP PLC/ADR (OTCMKTS:MITFY) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Valuation & Earnings

This table compares HFF and MITIE GRP PLC/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HFF $609.48 million 2.38 $94.96 million $2.47 15.03
MITIE GRP PLC/ADR $2.92 billion 0.21 -$35.95 million $0.89 7.69

HFF has higher earnings, but lower revenue than MITIE GRP PLC/ADR. MITIE GRP PLC/ADR is trading at a lower price-to-earnings ratio than HFF, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

89.8% of HFF shares are held by institutional investors. 4.9% of HFF shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

MITIE GRP PLC/ADR pays an annual dividend of $0.24 per share and has a dividend yield of 3.5%. HFF does not pay a dividend. MITIE GRP PLC/ADR pays out 27.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for HFF and MITIE GRP PLC/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HFF 1 2 0 0 1.67
MITIE GRP PLC/ADR 0 0 0 0 N/A

HFF presently has a consensus target price of $41.00, indicating a potential upside of 10.42%. Given HFF’s higher probable upside, equities analysts plainly believe HFF is more favorable than MITIE GRP PLC/ADR.

Volatility and Risk

HFF has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, MITIE GRP PLC/ADR has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares HFF and MITIE GRP PLC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HFF 16.66% 38.66% 10.63%
MITIE GRP PLC/ADR N/A N/A N/A

Summary

HFF beats MITIE GRP PLC/ADR on 12 of the 14 factors compared between the two stocks.

HFF Company Profile

HFF, Inc. provides commercial real estate and capital market services to the users and providers of capital primarily in the United States commercial real estate industry. The company offers debt placement services, such as construction and construction/mini-permanent loans, adjustable and fixed rate mortgages, entity level debts, mezzanine debts, forward delivery loans, tax exempt financing, and sale/leaseback financing to the owners of various properties comprising office, retail, industrial, hotel, multi-housing, student housing, self-storage, senior living, independent living, assisted living, nursing homes, condominiums and condominium conversions, mixed-use properties, and land. It also provides investment advisory services to commercial real estate owners; and equity placement and private equity alternatives and solutions, as well as assists clients in the sale of their commercial real estate debt note portfolios. In addition, the company offers private equity, investment banking, and advisory services, including equity capital to establish joint ventures relating to identified properties or properties to be acquired by a fund sponsor; private placements of preferred securities; advisory services for mergers and acquisitions, sales and divestitures, management buyouts, and recapitalizations and restructurings; and institutional marketing and fund-raising for public and private commercial real estate companies. Further, it provides loan sales and commercial loan servicing to life insurance companies. The company was founded in 1982 and is based in Dallas, Texas. HFF, Inc. is a subsidiary of HFF Holdings, LLC.

MITIE GRP PLC/ADR Company Profile

Mitie Group plc, through its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. It offers engineering services, such as technical and building maintenance services, as well as offers specialist services, such as heating, cooling, lighting, water treatment, and building controls; and security services and products, including security personnel, emergency mobile response solutions, and fire and security systems. The company also provides professional services, including capital project consultancy, energy consultancy, real estate advisory, records management consultancy, security and risk strategy, sustainability strategy, technical assets strategy, and workplace and design services; and cleaning and environmental services, such as pest control and landscaping services. In addition, it offers document management services; custody services, such as immigration and prison services; and indoor and outdoor event catering services. Further, the company provides property management services primarily to clients in the social housing sector; and painting and commercial refurbishment roofing services. Mitie Group plc was founded in 1987 and is headquartered in Southwark, the United Kingdom.

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