Back to top

Image: Bigstock

JLL or CBRE: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in stocks from the Real Estate - Operations sector have probably already heard of Jones Lang LaSalle (JLL - Free Report) and CBRE Group (CBRE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Both Jones Lang LaSalle and CBRE Group have a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

JLL currently has a forward P/E ratio of 15.47, while CBRE has a forward P/E of 19.40. We also note that JLL has a PEG ratio of 1.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CBRE currently has a PEG ratio of 1.76.

Another notable valuation metric for JLL is its P/B ratio of 2.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CBRE has a P/B of 4.07.

These are just a few of the metrics contributing to JLL's Value grade of B and CBRE's Value grade of C.

Both JLL and CBRE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JLL is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Jones Lang LaSalle Incorporated (JLL) - free report >>

CBRE Group, Inc. (CBRE) - free report >>

Published in