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

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Investors looking for stocks in the Real Estate - Operations sector might want to consider either Jones Lang LaSalle (JLL - Free Report) or CBRE Group (CBRE - 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.

Jones Lang LaSalle and CBRE Group are both sporting a Zacks Rank of # 1 (Strong Buy) right now. 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 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 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 11.30, while CBRE has a forward P/E of 14.06. We also note that JLL has a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CBRE currently has a PEG ratio of 1.28.

Another notable valuation metric for JLL is its P/B ratio of 1.73. 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 are just a few of the metrics contributing to JLL's Value grade of B and CBRE's Value grade of C.

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


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

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