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

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Investors interested in stocks from the Real Estate - Operations sector have probably already heard of Jones Lang LaSalle (JLL - Free Report) and Invitation Home (INVH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Jones Lang LaSalle and Invitation Home are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. 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 piece of the puzzle 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 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 11.16, while INVH has a forward P/E of 23.42. We also note that JLL has a PEG ratio of 1.24. 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. INVH currently has a PEG ratio of 3.13.

Another notable valuation metric for JLL is its P/B ratio of 1.60. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, INVH has a P/B of 1.98.

These metrics, and several others, help JLL earn a Value grade of A, while INVH has been given a Value grade of F.

JLL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that JLL is likely the superior value option right now.


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

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