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

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Investors interested in stocks from the Real Estate - Operations sector have probably already heard of 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Jones Lang LaSalle has a Zacks Rank of #1 (Strong 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 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

JLL currently has a forward P/E ratio of 13.11, while RMAX has a forward P/E of 17.92. We also note that JLL has a PEG ratio of 1.46. 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 2.56.

Another notable valuation metric for JLL is its P/B ratio of 1.86. 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, RMAX has a P/B of 9.02.

These are just a few of the metrics contributing to JLL's Value grade of A and RMAX's Value grade of D.

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


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

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