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CBRE vs. RMAX: Which Stock Is the Better Value Option?

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Investors with an interest in Real Estate - Operations stocks have likely encountered both CBRE Group (CBRE - Free Report) and RE/MAX (RMAX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

CBRE Group and RE/MAX are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CBRE has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CBRE currently has a forward P/E ratio of 14.95, while RMAX has a forward P/E of 21.22. We also note that CBRE has a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RMAX currently has a PEG ratio of 3.03.

Another notable valuation metric for CBRE is its P/B ratio of 3.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RMAX has a P/B of 14.22.

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

CBRE sticks out from RMAX in both our Zacks Rank and Style Scores models, so value investors will likely feel that CBRE is the better option right now.


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RE/MAX Holdings, Inc. (RMAX) - free report >>

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