Jones Lang LaSalle (NYSE: JLL) and Marcus & Millichap (NYSE:MMI) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Jones Lang LaSalle and Marcus & Millichap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jones Lang LaSalle 4.14% 12.04% 4.67%
Marcus & Millichap 8.51% 22.56% 15.79%

Analyst Recommendations

This is a summary of current recommendations and price targets for Jones Lang LaSalle and Marcus & Millichap, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jones Lang LaSalle 0 2 4 0 2.67
Marcus & Millichap 0 3 0 0 2.00

Jones Lang LaSalle currently has a consensus price target of $131.80, indicating a potential upside of 3.58%. Marcus & Millichap has a consensus price target of $27.00, indicating a potential upside of 0.52%. Given Jones Lang LaSalle’s stronger consensus rating and higher probable upside, analysts plainly believe Jones Lang LaSalle is more favorable than Marcus & Millichap.

Dividends

Jones Lang LaSalle pays an annual dividend of $0.70 per share and has a dividend yield of 0.6%. Marcus & Millichap does not pay a dividend. Jones Lang LaSalle pays out 10.6% of its earnings in the form of a dividend. Marcus & Millichap has increased its dividend for 6 consecutive years.

Valuation and Earnings

This table compares Jones Lang LaSalle and Marcus & Millichap’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jones Lang LaSalle $7.31 billion 0.79 $651.60 million $6.62 19.22
Marcus & Millichap $703.37 million 1.46 $101.83 million $1.54 17.44

Jones Lang LaSalle has higher revenue and earnings than Marcus & Millichap. Marcus & Millichap 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 and Volatility

Jones Lang LaSalle has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500. Comparatively, Marcus & Millichap has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Insider & Institutional Ownership

90.3% of Jones Lang LaSalle shares are held by institutional investors. Comparatively, 41.9% of Marcus & Millichap shares are held by institutional investors. 0.7% of Jones Lang LaSalle shares are held by company insiders. Comparatively, 58.3% of Marcus & Millichap 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.

Summary

Jones Lang LaSalle beats Marcus & Millichap on 10 of the 17 factors compared between the two stocks.

Jones Lang LaSalle Company Profile

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.

Marcus & Millichap Company Profile

Marcus & Millichap, Inc. is a brokerage company specializing in commercial real estate investment sales, financing, research and advisory services. The Company offers three primary services to its clients: commercial real estate investment brokerage, financing, and ancillary services, including other research, advisory and consulting services. It provides its financing services through Marcus & Millichap Capital Corporation, which is a broker of debt financing for commercial properties. Its research, advisory and consulting services are designed to assist clients in forming their investment strategy and making transaction decisions. Its advisory services include opinions of value, operating and financial performance benchmarking analysis, and specific asset buy-sell strategies. As of December 31, 2016, the Company had over 1,700 investment sales and financing professionals in 82 offices in the United States and Canada that provide investment brokerage and financing services.

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