Back to top

Image: Bigstock

NMRK vs. BEKE: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Real Estate - Operations stocks have likely encountered both Newmark Group (NMRK - Free Report) and KE Holdings Inc. Sponsored ADR (BEKE - 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.

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 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.

Right now, Newmark Group is sporting a Zacks Rank of #1 (Strong Buy), while KE Holdings Inc. Sponsored ADR 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 NMRK has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

NMRK currently has a forward P/E ratio of 8.61, while BEKE has a forward P/E of 53.68. We also note that NMRK has a PEG ratio of 0.86. 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. BEKE currently has a PEG ratio of 1.81.

Another notable valuation metric for NMRK is its P/B ratio of 2.10. 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, BEKE has a P/B of 4.19.

These metrics, and several others, help NMRK earn a Value grade of A, while BEKE has been given a Value grade of D.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Newmark Group, Inc. (NMRK) - free report >>

KE Holdings Inc. Sponsored ADR (BEKE) - free report >>

Published in