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

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Investors interested in Real Estate - Operations stocks are likely familiar with Jones Lang LaSalle (JLL - Free Report) and Invitation Home (INVH - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Jones Lang LaSalle and Invitation Home are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that JLL likely has seen a stronger improvement to its earnings outlook than INVH has recently. But this is only part of the picture 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.

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 12.51, while INVH has a forward P/E of 23.32. We also note that JLL has a PEG ratio of 1.39. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. INVH currently has a PEG ratio of 3.04.

Another notable valuation metric for JLL is its P/B ratio of 1.72. 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, INVH has a P/B of 1.94.

Based on these metrics and many more, JLL holds a Value grade of A, while INVH has a Value grade of F.

JLL stands above INVH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JLL is the superior value option right now.


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

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