Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors with an interest in Real Estate - Operations stocks have likely encountered both Jones Lang LaSalle (JLL) and Essential Properties Realty Trust, Inc. (EPRT). 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Jones Lang LaSalle has a Zacks Rank of #2 (Buy), while Essential Properties Realty Trust, Inc. has a Zacks Rank of #3 (Hold). 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. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 12.32, while EPRT has a forward P/E of 21.52. We also note that JLL has a PEG ratio of 1.37. 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. EPRT currently has a PEG ratio of 1.87.

Another notable valuation metric for JLL is its P/B ratio of 1.69. 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, EPRT has a P/B of 1.97.

These are just a few of the metrics contributing to JLL's Value grade of B and EPRT's Value grade of F.

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

Published in