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ARE vs. CBRE: A Head-to-Head Stock Comparison

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Here’s a clear look at ARE and CBRE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

A key difference in structure is that ARE is a Real Estate Investment Trust (REIT), a company that primarily invests in income-generating real estate, whereas CBRE is a conventional stock.

SymbolARECBRE
Company NameAlexandria Real Estate Equities, Inc.CBRE Group, Inc.
CountryUnited StatesUnited States
GICS SectorReal EstateReal Estate
GICS IndustryOffice REITsReal Estate Management & Development
Market Capitalization13.22 billion USD47.86 billion USD
ExchangeNYSENYSE
Listing DateMay 28, 1997June 10, 2004
Security TypeREITCommon Stock

Historical Performance

This chart compares the performance of ARE and CBRE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ARE vs. CBRE: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolARECBRE
5-Day Price Return4.39%1.45%
13-Week Price Return7.44%23.26%
26-Week Price Return-17.81%12.37%
52-Week Price Return-31.76%42.97%
Month-to-Date Return2.41%3.27%
Year-to-Date Return-19.76%22.51%
10-Day Avg. Volume1.73M1.30M
3-Month Avg. Volume1.75M1.68M
3-Month Volatility31.33%27.51%
Beta1.331.40

Profitability

Return on Equity (TTM)

ARE

-0.06%

Office REITs Industry

Max
9.47%
Q3
6.07%
Median
3.22%
Q1
0.83%
Min
-0.08%

ARE has a negative Return on Equity of -0.06%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

CBRE

12.96%

Real Estate Management & Development Industry

Max
14.65%
Q3
8.92%
Median
3.63%
Q1
1.63%
Min
-8.05%

In the upper quartile for the Real Estate Management & Development industry, CBRE’s Return on Equity of 12.96% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ARE vs. CBRE: A comparison of their Return on Equity (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Net Profit Margin (TTM)

ARE

-0.32%

Office REITs Industry

Max
74.75%
Q3
44.46%
Median
31.39%
Q1
5.85%
Min
-0.35%

In the Office REITs industry, Net Profit Margin is often not the primary profitability metric.

CBRE

2.86%

Real Estate Management & Development Industry

Max
57.16%
Q3
24.60%
Median
9.48%
Q1
2.61%
Min
-26.61%

CBRE’s Net Profit Margin of 2.86% is aligned with the median group of its peers in the Real Estate Management & Development industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARE vs. CBRE: A comparison of their Net Profit Margin (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Operating Profit Margin (TTM)

ARE

12.67%

Office REITs Industry

Max
91.62%
Q3
51.67%
Median
42.78%
Q1
23.56%
Min
14.93%

In the Office REITs industry, Operating Profit Margin is often not the primary measure of operational efficiency.

CBRE

4.23%

Real Estate Management & Development Industry

Max
92.29%
Q3
43.61%
Median
20.96%
Q1
6.44%
Min
-48.90%

CBRE’s Operating Profit Margin of 4.23% is in the lower quartile for the Real Estate Management & Development industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

ARE vs. CBRE: A comparison of their Operating Profit Margin (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Profitability at a Glance

SymbolARECBRE
Return on Equity (TTM)-0.06%12.96%
Return on Assets (TTM)-0.03%4.22%
Net Profit Margin (TTM)-0.32%2.86%
Operating Profit Margin (TTM)12.67%4.23%
Gross Profit Margin (TTM)71.25%19.42%

Financial Strength

Current Ratio (MRQ)

ARE

0.40

Office REITs Industry

Max
1.49
Q3
1.22
Median
0.67
Q1
0.44
Min
0.14

ARE’s Current Ratio of 0.40 falls into the lower quartile for the Office REITs industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CBRE

1.13

Real Estate Management & Development Industry

Max
3.73
Q3
2.22
Median
1.42
Q1
1.03
Min
0.04

CBRE’s Current Ratio of 1.13 aligns with the median group of the Real Estate Management & Development industry, indicating that its short-term liquidity is in line with its sector peers.

ARE vs. CBRE: A comparison of their Current Ratio (MRQ) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ARE

0.77

Office REITs Industry

Max
1.62
Q3
1.32
Median
0.87
Q1
0.73
Min
0.42

ARE’s Debt-to-Equity Ratio of 0.77 is typical for the Office REITs industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CBRE

0.90

Real Estate Management & Development Industry

Max
2.62
Q3
1.30
Median
0.84
Q1
0.39
Min
0.00

CBRE’s Debt-to-Equity Ratio of 0.90 is typical for the Real Estate Management & Development industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARE vs. CBRE: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Interest Coverage Ratio (TTM)

ARE

2.75

Office REITs Industry

Max
3.98
Q3
3.37
Median
1.66
Q1
1.16
Min
0.14

ARE’s Interest Coverage Ratio of 2.75 is positioned comfortably within the norm for the Office REITs industry, indicating a standard and healthy capacity to cover its interest payments.

CBRE

6.21

Real Estate Management & Development Industry

Max
23.14
Q3
12.97
Median
3.68
Q1
1.29
Min
-4.45

CBRE’s Interest Coverage Ratio of 6.21 is positioned comfortably within the norm for the Real Estate Management & Development industry, indicating a standard and healthy capacity to cover its interest payments.

ARE vs. CBRE: A comparison of their Interest Coverage Ratio (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Financial Strength at a Glance

SymbolARECBRE
Current Ratio (MRQ)0.401.13
Quick Ratio (MRQ)0.401.09
Debt-to-Equity Ratio (MRQ)0.770.90
Interest Coverage Ratio (TTM)2.756.21

Growth

Revenue Growth

ARE vs. CBRE: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ARE vs. CBRE: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ARE

6.74%

Office REITs Industry

Max
6.88%
Q3
5.94%
Median
4.58%
Q1
3.82%
Min
1.22%

With a Dividend Yield of 6.74%, ARE offers a more attractive income stream than most of its peers in the Office REITs industry, signaling a strong commitment to shareholder returns.

CBRE

0.00%

Real Estate Management & Development Industry

Max
6.79%
Q3
3.51%
Median
2.22%
Q1
0.52%
Min
0.00%

CBRE currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ARE vs. CBRE: A comparison of their Dividend Yield (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Dividend Payout Ratio (TTM)

ARE

174.29%

Office REITs Industry

Max
231.12%
Q3
180.65%
Median
94.76%
Q1
87.60%
Min
1.02%

ARE’s Dividend Payout Ratio of 174.29% is within the typical range for the Office REITs industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CBRE

0.00%

Real Estate Management & Development Industry

Max
242.45%
Q3
106.13%
Median
55.27%
Q1
14.97%
Min
0.00%

CBRE has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ARE vs. CBRE: A comparison of their Dividend Payout Ratio (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Dividend at a Glance

SymbolARECBRE
Dividend Yield (TTM)6.74%0.00%
Dividend Payout Ratio (TTM)174.29%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

ARE

--

Office REITs Industry

Max
48.29
Q3
44.14
Median
23.60
Q1
18.77
Min
6.08

The P/E Ratio is often not the primary metric for valuation in the Office REITs industry.

CBRE

44.10

Real Estate Management & Development Industry

Max
41.09
Q3
23.50
Median
17.29
Q1
11.14
Min
6.36

At 44.10, CBRE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Real Estate Management & Development industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ARE vs. CBRE: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Price-to-Sales Ratio (TTM)

ARE

4.21

Office REITs Industry

Max
14.09
Q3
9.33
Median
6.96
Q1
4.25
Min
2.65

In the lower quartile for the Office REITs industry, ARE’s P/S Ratio of 4.21 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

CBRE

1.26

Real Estate Management & Development Industry

Max
12.22
Q3
5.64
Median
2.53
Q1
0.98
Min
0.01

CBRE’s P/S Ratio of 1.26 aligns with the market consensus for the Real Estate Management & Development industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARE vs. CBRE: A comparison of their Price-to-Sales Ratio (TTM) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Price-to-Book Ratio (MRQ)

ARE

0.73

Office REITs Industry

Max
2.06
Q3
1.34
Median
1.02
Q1
0.68
Min
0.57

ARE’s P/B Ratio of 0.73 is within the conventional range for the Office REITs industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

CBRE

5.06

Real Estate Management & Development Industry

Max
2.36
Q3
1.18
Median
0.75
Q1
0.35
Min
0.06

At 5.06, CBRE’s P/B Ratio is at an extreme premium to the Real Estate Management & Development industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ARE vs. CBRE: A comparison of their Price-to-Book Ratio (MRQ) against their respective Office REITs and Real Estate Management & Development industry benchmarks.

Valuation at a Glance

SymbolARECBRE
Price-to-Earnings Ratio (TTM)--44.10
Price-to-Sales Ratio (TTM)4.211.26
Price-to-Book Ratio (MRQ)0.735.06
Price-to-Free Cash Flow Ratio (TTM)539.8624.51