Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors with an interest in Real Estate - Operations stocks have likely encountered both Jones Lang LaSalle (JLL - Free Report) and KE Holdings Inc. Sponsored ADR (BEKE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Jones Lang LaSalle has a Zacks Rank of #2 (Buy), while KE Holdings Inc. Sponsored ADR has a Zacks Rank of #3 (Hold) right now. 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 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

JLL currently has a forward P/E ratio of 13.31, while BEKE has a forward P/E of 31.09. We also note that JLL has a PEG ratio of 1.48. 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 2.58.

Another notable valuation metric for JLL is its P/B ratio of 2.09. 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, BEKE has a P/B of 2.24.

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

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.


See More Zacks Research for These Tickers


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