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JLL vs. CBRE: 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 CBRE Group (CBRE - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Jones Lang LaSalle and CBRE Group have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

JLL currently has a forward P/E ratio of 16.63, while CBRE has a forward P/E of 22.16. We also note that JLL has a PEG ratio of 1.85. 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. CBRE currently has a PEG ratio of 2.01.

Another notable valuation metric for JLL is its P/B ratio of 1.83. 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, CBRE has a P/B of 3.92.

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

Both JLL and CBRE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JLL is the superior value option right now.


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

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