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CBRE vs. BEKE: Which Stock Is the Better Value Option?
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Investors interested in Real Estate - Operations stocks are likely familiar with CBRE Group (CBRE - Free Report) and KE Holdings Inc. Sponsored ADR (BEKE - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, CBRE Group has a Zacks Rank of #2 (Buy), while KE Holdings Inc. Sponsored ADR has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CBRE is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
CBRE currently has a forward P/E ratio of 21.66, while BEKE has a forward P/E of 63.42. We also note that CBRE has a PEG ratio of 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BEKE currently has a PEG ratio of 2.13.
Another notable valuation metric for CBRE is its P/B ratio of 3.77. 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, BEKE has a P/B of 4.95.
These metrics, and several others, help CBRE earn a Value grade of B, while BEKE has been given a Value grade of D.
CBRE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CBRE is likely the superior value option right now.
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CBRE vs. BEKE: Which Stock Is the Better Value Option?
Investors interested in Real Estate - Operations stocks are likely familiar with CBRE Group (CBRE - Free Report) and KE Holdings Inc. Sponsored ADR (BEKE - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, CBRE Group has a Zacks Rank of #2 (Buy), while KE Holdings Inc. Sponsored ADR has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CBRE is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
CBRE currently has a forward P/E ratio of 21.66, while BEKE has a forward P/E of 63.42. We also note that CBRE has a PEG ratio of 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BEKE currently has a PEG ratio of 2.13.
Another notable valuation metric for CBRE is its P/B ratio of 3.77. 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, BEKE has a P/B of 4.95.
These metrics, and several others, help CBRE earn a Value grade of B, while BEKE has been given a Value grade of D.
CBRE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CBRE is likely the superior value option right now.