ARE vs. CBRE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARE and CBRE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CBRE’s market capitalization of 42.68 billion USD is significantly greater than ARE’s 13.31 billion USD, highlighting its more substantial market valuation.
With betas of 1.27 for ARE and 1.29 for CBRE, both stocks show similar sensitivity to overall market movements.
| Symbol | ARE | CBRE |
|---|---|---|
| Company Name | Alexandria Real Estate Equities, Inc. | CBRE Group, Inc. |
| Country | US | US |
| Sector | Real Estate | Real Estate |
| Industry | REIT - Office | Real Estate - Services |
| CEO | Peter M. Moglia | Robert E. Sulentic |
| Price | 76.92 USD | 143.18 USD |
| Market Cap | 13.31 billion USD | 42.68 billion USD |
| Beta | 1.27 | 1.29 |
| Exchange | NYSE | NYSE |
| IPO Date | May 28, 1997 | June 10, 2004 |
| ADR | No | No |
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.
Profitability
Return on Equity
ARE
0.72%
REIT - Office Industry
- Max
- 9.40%
- Q3
- 3.15%
- Median
- 0.71%
- Q1
- -2.53%
- Min
- -10.33%
Return on Equity is often not a primary performance indicator in the REIT - Office industry.
CBRE
11.91%
Real Estate - Services Industry
- Max
- 11.91%
- Q3
- 9.21%
- Median
- 1.80%
- Q1
- -6.57%
- Min
- -12.86%
In the upper quartile for the Real Estate - Services industry, CBRE’s Return on Equity of 11.91% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ARE
194.97%
REIT - Office Industry
- Max
- 5.21%
- Q3
- 3.70%
- Median
- 2.50%
- Q1
- 1.66%
- Min
- 0.56%
Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Office industry.
CBRE
6.30%
Real Estate - Services Industry
- Max
- 24.08%
- Q3
- 6.27%
- Median
- 3.51%
- Q1
- -7.42%
- Min
- -22.36%
In the upper quartile for the Real Estate - Services industry, CBRE’s Return on Invested Capital of 6.30% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ARE
5.70%
REIT - Office Industry
- Max
- 21.26%
- Q3
- 7.69%
- Median
- 3.16%
- Q1
- -9.27%
- Min
- -30.12%
In the REIT - Office industry, Net Profit Margin is often not the primary profitability metric.
CBRE
2.74%
Real Estate - Services Industry
- Max
- 9.09%
- Q3
- 2.89%
- Median
- 2.32%
- Q1
- -1.64%
- Min
- -7.18%
CBRE’s Net Profit Margin of 2.74% is aligned with the median group of its peers in the Real Estate - Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ARE
38.61%
REIT - Office Industry
- Max
- 38.61%
- Q3
- 26.61%
- Median
- 20.01%
- Q1
- 11.93%
- Min
- -1.11%
In the REIT - Office industry, Operating Profit Margin is often not the primary measure of operational efficiency.
CBRE
4.04%
Real Estate - Services Industry
- Max
- 20.42%
- Q3
- 7.02%
- Median
- 3.99%
- Q1
- -3.44%
- Min
- -16.39%
CBRE’s Operating Profit Margin of 4.04% is around the midpoint for the Real Estate - Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ARE | CBRE |
|---|---|---|
| Return on Equity (TTM) | 0.72% | 11.91% |
| Return on Assets (TTM) | 0.37% | 3.81% |
| Return on Invested Capital (TTM) | 194.97% | 6.30% |
| Net Profit Margin (TTM) | 5.70% | 2.74% |
| Operating Profit Margin (TTM) | 38.61% | 4.04% |
| Gross Profit Margin (TTM) | 37.76% | 19.86% |
Financial Strength
Current Ratio
ARE
--
REIT - Office Industry
- Max
- 4.34
- Q3
- 2.61
- Median
- 1.46
- Q1
- 0.88
- Min
- 0.01
For the REIT - Office industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
CBRE
1.00
Real Estate - Services Industry
- Max
- 3.77
- Q3
- 2.87
- Median
- 1.40
- Q1
- 1.11
- Min
- 0.31
CBRE’s Current Ratio of 1.00 falls into the lower quartile for the Real Estate - Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ARE
--
REIT - Office Industry
- Max
- 2.25
- Q3
- 1.66
- Median
- 1.33
- Q1
- 0.95
- Min
- 0.63
Debt-to-Equity Ratio data for ARE is currently unavailable.
CBRE
1.07
Real Estate - Services Industry
- Max
- 2.11
- Q3
- 1.66
- Median
- 0.54
- Q1
- 0.24
- Min
- 0.00
CBRE’s Debt-to-Equity Ratio of 1.07 is typical for the Real Estate - Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ARE
6.43
REIT - Office Industry
- Max
- 2.60
- Q3
- 1.69
- Median
- 1.28
- Q1
- 0.62
- Min
- -0.11
With an Interest Coverage Ratio of 6.43, ARE demonstrates a superior capacity to service its debt, placing it well above the typical range for the REIT - Office industry. This stems from either robust earnings or a conservative debt load.
CBRE
6.48
Real Estate - Services Industry
- Max
- 12.80
- Q3
- 6.13
- Median
- 2.49
- Q1
- -1.96
- Min
- -9.17
CBRE’s Interest Coverage Ratio of 6.48 is in the upper quartile for the Real Estate - Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ARE | CBRE |
|---|---|---|
| Current Ratio (TTM) | -- | 1.00 |
| Quick Ratio (TTM) | -- | 1.00 |
| Debt-to-Equity Ratio (TTM) | -- | 1.07 |
| Debt-to-Asset Ratio (TTM) | -- | 0.34 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.23 | 3.65 |
| Interest Coverage Ratio (TTM) | 6.43 | 6.48 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARE and CBRE. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ARE
6.84%
REIT - Office Industry
- Max
- 14.12%
- Q3
- 6.26%
- Median
- 4.71%
- Q1
- 2.62%
- Min
- 0.00%
With a Dividend Yield of 6.84%, ARE offers a more attractive income stream than most of its peers in the REIT - Office industry, signaling a strong commitment to shareholder returns.
CBRE
0.00%
Real Estate - Services Industry
- Max
- 10.79%
- Q3
- 1.45%
- Median
- 0.00%
- Q1
- 0.00%
- 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.
Dividend Payout Ratio
ARE
492.05%
REIT - Office Industry
- Max
- 1,116.08%
- Q3
- 556.10%
- Median
- 233.84%
- Q1
- 123.25%
- Min
- 49.88%
ARE’s Dividend Payout Ratio of 492.05% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
CBRE
0.00%
Real Estate - Services Industry
- Max
- 34.56%
- Q3
- 3.97%
- Median
- 0.00%
- Q1
- 0.00%
- 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.
Dividend at a Glance
| Symbol | ARE | CBRE |
|---|---|---|
| Dividend Yield (TTM) | 6.84% | 0.00% |
| Dividend Payout Ratio (TTM) | 492.05% | 0.00% |
Valuation
Price-to-Earnings Ratio
ARE
95.37
REIT - Office Industry
- Max
- 90.97
- Q3
- 72.34
- Median
- 44.07
- Q1
- 23.31
- Min
- 19.29
The P/E Ratio is often not the primary metric for valuation in the REIT - Office industry.
CBRE
43.58
Real Estate - Services Industry
- Max
- 76.80
- Q3
- 59.95
- Median
- 42.42
- Q1
- 19.27
- Min
- 12.83
CBRE’s P/E Ratio of 43.58 is within the middle range for the Real Estate - Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ARE
-0.95
REIT - Office Industry
- Max
- 24.48
- Q3
- 14.97
- Median
- 1.22
- Q1
- 0.24
- Min
- 0.04
The Forward PEG Ratio is often not a primary valuation metric in the REIT - Office industry.
CBRE
2.72
Real Estate - Services Industry
- Max
- 13.06
- Q3
- 6.50
- Median
- 1.45
- Q1
- 0.67
- Min
- 0.01
CBRE’s Forward PEG Ratio of 2.72 is within the middle range of its peers in the Real Estate - Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
ARE
5.51
REIT - Office Industry
- Max
- 5.80
- Q3
- 5.05
- Median
- 3.85
- Q1
- 2.27
- Min
- 1.19
ARE’s P/S Ratio of 5.51 is in the upper echelon for the REIT - Office industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
CBRE
1.16
Real Estate - Services Industry
- Max
- 1.84
- Q3
- 1.80
- Median
- 1.22
- Q1
- 0.65
- Min
- 0.07
CBRE’s P/S Ratio of 1.16 aligns with the market consensus for the Real Estate - Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ARE
0.60
REIT - Office Industry
- Max
- 2.09
- Q3
- 1.38
- Median
- 0.98
- Q1
- 0.74
- Min
- 0.14
ARE’s P/B Ratio of 0.60 is in the lower quartile for the REIT - Office industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
CBRE
5.29
Real Estate - Services Industry
- Max
- 6.77
- Q3
- 5.49
- Median
- 1.72
- Q1
- 0.71
- Min
- 0.28
The P/B Ratio is often not a primary valuation metric for the Real Estate - Services industry.
Valuation at a Glance
| Symbol | ARE | CBRE |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 95.37 | 43.58 |
| Forward PEG Ratio (TTM) | -0.95 | 2.72 |
| Price-to-Sales Ratio (P/S, TTM) | 5.51 | 1.16 |
| Price-to-Book Ratio (P/B, TTM) | 0.60 | 5.29 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.70 | 31.43 |
| EV-to-EBITDA (TTM) | 6.16 | 24.49 |
| EV-to-Sales (TTM) | 5.32 | 1.37 |