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NMRK vs. JLL: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Real Estate - Operations sector might want to consider either Newmark Group (NMRK - Free Report) or Jones Lang LaSalle (JLL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Newmark Group and Jones Lang LaSalle are holding a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

NMRK currently has a forward P/E ratio of 11.72, while JLL has a forward P/E of 16.68. We also note that NMRK has a PEG ratio of 1.17. 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. JLL currently has a PEG ratio of 1.85.

Another notable valuation metric for NMRK is its P/B ratio of 2.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, JLL has a P/B of 2.29.

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

Both NMRK and JLL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NMRK is the superior value option right now.


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

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