Critical Comparison: La Rosa (NASDAQ:LRHC) & Newmark Group (NASDAQ:NMRK)

La Rosa (NASDAQ:LRHC) and Newmark Group (NASDAQ:NMRK) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for La Rosa and Newmark Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
La Rosa	0	0	0	0	N/A
Newmark Group	1	2	1	0	2.00

Newmark Group has a consensus price target of $10.17, indicating a potential downside of 4.98%. Given Newmark Group’s higher possible upside, analysts plainly believe Newmark Group is more favorable than La Rosa.

Insider and Institutional Ownership

7.6% of La Rosa shares are held by institutional investors. Comparatively, 58.4% of Newmark Group shares are held by institutional investors. 54.0% of La Rosa shares are held by company insiders. Comparatively, 31.8% of Newmark Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares La Rosa and Newmark Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
La Rosa	N/A	N/A	N/A
Newmark Group	1.72%	17.03%	5.66%

Valuation and Earnings

This table compares La Rosa and Newmark Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
La Rosa	$26.20 million	0.79	-$2.32 million	N/A	N/A
Newmark Group	$2.47 billion	0.75	$42.58 million	$0.25	42.80

Newmark Group has higher revenue and earnings than La Rosa.

Summary

Newmark Group beats La Rosa on 8 of the 10 factors compared between the two stocks.

About La Rosa

La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. It delivers coaching services to its brokers and franchisee's brokers; franchises real estate brokerage agencies, and trains its sales agents to provide residential property management services to owners of single-family residential properties. The company also engages in the real estate brokerage business, as well as sale of commercial real estate property. La Rosa Holdings Corp. was founded in 2004 and is based in Celebration, Florida.

About Newmark Group

Newmark Group, Inc. provides commercial real estate services in the United States, the United Kingdom, and internationally. The company offers capital markets consisting of investment sales and commercial mortgage brokerage; landlord or agency representation leasing; valuation and advisory; property management; commercial real estate technology platform and capabilities; the United Kingdom business rates services; due diligence, consulting, and other advisory services; GSEs and the Federal Housing Administration lending services comprising multifamily lending and loan servicing; asset management; and flexible workspace solutions for owners. It also provides tenant representation leasing; and global corporate services consisting of workplace and occupancy strategy, energy and sustainability services, technology, project management, real estate and lease administration, and facilities management. The company offers its services to commercial real estate tenants, investors, owners, occupiers, and developers; lenders; small and medium size businesses; and multi-national corporations. The company was formerly known as Newmark Grubb Knight Frank Capital Group and changed its name to Newmark Group, Inc. in October 2017. Newmark Group, Inc. was founded in 1929 and is based in New York, New York. Newmark Group, Inc. is a subsidiary of Cantor Fitzgerald, L.P.