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

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Investors with an interest in Real Estate - Operations stocks have likely encountered both Jones Lang LaSalle (JLL - Free Report) and RE/MAX (RMAX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Jones Lang LaSalle has a Zacks Rank of #2 (Buy), while RE/MAX has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JLL has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

JLL currently has a forward P/E ratio of 14.50, while RMAX has a forward P/E of 17.35. We also note that JLL has a PEG ratio of 1.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RMAX currently has a PEG ratio of 2.48.

Another notable valuation metric for JLL is its P/B ratio of 2.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RMAX has a P/B of 9.89.

These metrics, and several others, help JLL earn a Value grade of B, while RMAX has been given a Value grade of C.

JLL has seen stronger estimate revision activity and sports more attractive valuation metrics than RMAX, so it seems like value investors will conclude that JLL is the superior option right now.


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

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