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 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.
Symbol | ARE | CBRE |
---|---|---|
Company Name | Alexandria Real Estate Equities, Inc. | CBRE Group, Inc. |
Country | United States | United States |
GICS Sector | Real Estate | Real Estate |
GICS Industry | Office REITs | Real Estate Management & Development |
Market Capitalization | 13.22 billion USD | 47.86 billion USD |
Exchange | NYSE | NYSE |
Listing Date | May 28, 1997 | June 10, 2004 |
Security Type | REIT | Common 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.
Historical Performance at a Glance
Symbol | ARE | CBRE |
---|---|---|
5-Day Price Return | 4.39% | 1.45% |
13-Week Price Return | 7.44% | 23.26% |
26-Week Price Return | -17.81% | 12.37% |
52-Week Price Return | -31.76% | 42.97% |
Month-to-Date Return | 2.41% | 3.27% |
Year-to-Date Return | -19.76% | 22.51% |
10-Day Avg. Volume | 1.73M | 1.30M |
3-Month Avg. Volume | 1.75M | 1.68M |
3-Month Volatility | 31.33% | 27.51% |
Beta | 1.33 | 1.40 |
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.
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.
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.
Profitability at a Glance
Symbol | ARE | CBRE |
---|---|---|
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.
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.
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.
Financial Strength at a Glance
Symbol | ARE | CBRE |
---|---|---|
Current Ratio (MRQ) | 0.40 | 1.13 |
Quick Ratio (MRQ) | 0.40 | 1.09 |
Debt-to-Equity Ratio (MRQ) | 0.77 | 0.90 |
Interest Coverage Ratio (TTM) | 2.75 | 6.21 |
Growth
Revenue Growth
EPS Growth
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.
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.
Dividend at a Glance
Symbol | ARE | CBRE |
---|---|---|
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.
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.
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.
Valuation at a Glance
Symbol | ARE | CBRE |
---|---|---|
Price-to-Earnings Ratio (TTM) | -- | 44.10 |
Price-to-Sales Ratio (TTM) | 4.21 | 1.26 |
Price-to-Book Ratio (MRQ) | 0.73 | 5.06 |
Price-to-Free Cash Flow Ratio (TTM) | 539.86 | 24.51 |