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

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Investors interested in Real Estate - Operations stocks are likely familiar with 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Jones Lang LaSalle has a Zacks Rank of #1 (Strong Buy), while Invitation Home has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JLL is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 12.76, while INVH has a forward P/E of 23.89. We also note that JLL has a PEG ratio of 1.42. 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. INVH currently has a PEG ratio of 3.04.

Another notable valuation metric for JLL is its P/B ratio of 1.78. 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 1.98.

Based on these metrics and many more, JLL holds a Value grade of B, while INVH has a Value grade of F.

JLL has seen stronger estimate revision activity and sports more attractive valuation metrics than INVH, so it seems like value investors will conclude that JLL is the superior option right now.


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