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

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Investors with an interest in Real Estate - Operations stocks have likely encountered both Newmark Group (NMRK - Free Report) and Invitation Home (INVH - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both Newmark Group and Invitation Home are sporting a Zacks Rank of # 2 (Buy). 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. 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 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 5, while INVH has a forward P/E of 22.59. We also note that NMRK has a PEG ratio of 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. INVH currently has a PEG ratio of 3.02.

Another notable valuation metric for NMRK is its P/B ratio of 1.43. 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, INVH has a P/B of 1.91.

Based on these metrics and many more, NMRK holds a Value grade of A, while INVH has a Value grade of D.

Both NMRK and INVH 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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