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JLL vs. LMRK: Which Stock Is the Better Value Option?

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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 Landmark Infrastructure Partners . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Jones Lang LaSalle has a Zacks Rank of #1 (Strong Buy), while Landmark Infrastructure Partners has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JLL has an improving earnings outlook. But this is only part of the picture for value investors.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

JLL currently has a forward P/E ratio of 10.84, while LMRK has a forward P/E of 26.44. 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. LMRK currently has a PEG ratio of 5.29.

Another notable valuation metric for JLL is its P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LMRK has a P/B of 1.68.

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

JLL sticks out from LMRK 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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