As commercial real estate markets evolve, choosing between a global titan like CBRE Group (CBRE +1.06%) and a faster-growing challenger like Newmark Group (NMRK +0.80%) is a key decision for your portfolio.
CBRE provides massive scale and international reach, while Newmark offers agility and higher growth rates. Both companies facilitate property sales, leasing, and management, making them central to the global real estate landscape.
The case for CBRE
CBRE sells a wide range of services including property management, investment management, and critical infrastructure services. It operates within the commercial real estate investing industry to serve clients in over 100 countries. The company supports nearly 90 of the Fortune 100 and focuses on global scale to attract institutional investors.
In its 2025 fiscal year (FY), revenue reached nearly $40.6 billion, representing growth of 13.4% compared to the previous year. Net income for the period was $1.3 billion, resulting in a net margin of 3.2%. This performance reflects a steady increase from the $35.8 billion in revenue recorded during the prior fiscal year.
As of its December 2025 balance sheet, the debt-to-equity ratio was 1.1x, which measures total debt against shareholder equity. The current ratio, comparing short-term assets to liabilities, was 1.1x. Free cash flow, the cash remaining after capital expenditures, reached $1.2 billion for the year.
The case for Newmark
Newmark operates as a commercial real estate advisor with 175 offices worldwide. It serves institutional investors and global corporations across established and emerging markets on four continents. The company utilizes 9,300 professionals to deliver customized advisory services in a competitive market.
During FY 2025, revenue grew by 20.3% to reach $3.3 billion. The company reported a net income of $126.2 million for that fiscal year. Its net margin was 3.8%, which was an improvement over the 2.2% net margin reported in FY 2024.
Based on the December 2025 balance sheet, Newmark maintains a current ratio of 2.2x and a debt-to-equity ratio of 1.1x. Free cash flow for the year was $142.6 million. Note that stock-based compensation represented 164% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.
Risk profile comparison
CBRE faces significant macroeconomic risks, as property activity often drops when interest rates rise. The company also depends on maintaining approvals with agencies like Fannie Mae and Freddie Mac. Furthermore, it must compete with firms like Jones Lang LaSalle and adapt to technological disruptions from artificial intelligence.
Newmark is highly sensitive to the broader economy and transaction volumes. It faces intense competition from larger players including CBRE Group. Additionally, the company relies heavily on government-sponsored entities for its loan servicing business.
Valuation comparison
Newmark appears to be cheaper given its lower Forward P/E and P/S ratio, which compare stock price to future earnings estimates and revenue respectively.
| Metric | CBRE | Newmark | Sector Benchmark |
|---|---|---|---|
| Forward P/E | 17.6x | 7.8x | 33.3x |
| P/S ratio | 1.0x | 0.7x | n/a |
Sector benchmark uses the SPDR XLRE sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Commercial real estate has experienced plenty of ups and downs in recent years with the rise in hybrid and remote work models after the COVID-19 pandemic, and now the arrival of artificial intelligence raising questions about how that will impact the sector as job losses to AI may reduce demand. Even so, both CBRE Group and Newmark Group are seeing sales growth, suggesting their businesses continue to expand amidst headwinds such as interest rates showing no signs of a reduction.
CBRE is a giant in the industry, with revenue that’s more than ten times larger than Newmark. However, its stock plunged in February after fourth-quarter net income fell 15% year over year to $416 million due to one-time charges related to a pension plan buyout. Shares continued to fall, eventually hitting a 52-week low of $121.69 on June 1. This creates a potential opportunity to pick up shares at a discount.
Newmark is showing impressive sales growth. Not only did revenue rise 20.3% year over year in FY 2025, in Q1, that growth accelerated to 27.2% as it delivered $846.5 million in sales. In addition, the company pays a dividend yielding a solid 1.6%. CBRE does not pay a dividend.
Considering Newmark’s lower valuation, higher sales growth, and dividend income, it is the better stock to buy over CBRE at this time.
