Back to top

Image: Bigstock

JLL vs. BEKE: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in Real Estate - Operations stocks are likely familiar with Jones Lang LaSalle (JLL - Free Report) and KE Holdings Inc. Sponsored ADR (BEKE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Right now, Jones Lang LaSalle is sporting a Zacks Rank of #1 (Strong Buy), while KE Holdings Inc. Sponsored ADR has a Zacks Rank of #3 (Hold). This means that JLL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 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 15.32, while BEKE has a forward P/E of 79.39. We also note that JLL has a PEG ratio of 1.70. 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. BEKE currently has a PEG ratio of 2.67.

Another notable valuation metric for JLL is its P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BEKE has a P/B of 7.90.

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

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


In-Depth Zacks Research for the Tickers Above


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


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

KE Holdings Inc. Sponsored ADR (BEKE) - free report >>

Published in