Back to top

Image: Bigstock

NMRK or CBRE: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Real Estate - Operations stocks have likely encountered both Newmark Group (NMRK - Free Report) and CBRE Group (CBRE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Newmark Group and CBRE Group are both sporting a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.

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.

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.

NMRK currently has a forward P/E ratio of 8.62, while CBRE has a forward P/E of 14.31. We also note that NMRK has a PEG ratio of 0.86. 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. CBRE currently has a PEG ratio of 1.30.

Another notable valuation metric for NMRK is its P/B ratio of 2.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CBRE has a P/B of 3.09.

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

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


See More Zacks Research for These Tickers


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


Newmark Group, Inc. (NMRK) - free report >>

CBRE Group, Inc. (CBRE) - free report >>

Published in