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

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Investors with an interest in Real Estate - Operations stocks have likely encountered both Jones Lang LaSalle (JLL - Free Report) and RE/MAX (RMAX - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Jones Lang LaSalle is sporting a Zacks Rank of #2 (Buy), while RE/MAX has a Zacks Rank of #4 (Sell). 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 factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

JLL currently has a forward P/E ratio of 13.23, while RMAX has a forward P/E of 14.74. We also note that JLL has a PEG ratio of 1.20. 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. RMAX currently has a PEG ratio of 2.11.

Another notable valuation metric for JLL is its P/B ratio of 1.82. 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, RMAX has a P/B of 8.19.

Based on these metrics and many more, JLL holds a Value grade of A, while RMAX has a Value grade of C.

JLL sticks out from RMAX in both our Zacks Rank and Style Scores models, so value investors will likely feel that JLL is the better option right now.


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

RE/MAX Holdings, Inc. (RMAX) - free report >>

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