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

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Investors with an interest in Real Estate - Operations stocks have likely encountered both Jones Lang LaSalle (JLL - Free Report) and CBRE Group (CBRE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.

Both Jones Lang LaSalle and CBRE Group have a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

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 11.67, while CBRE has a forward P/E of 14.52. We also note that JLL has a PEG ratio of 1.30. 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 1.32.

Another notable valuation metric for JLL is its P/B ratio of 1.79. 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, CBRE has a P/B of 3.19.

These metrics, and several others, help JLL earn a Value grade of B, while CBRE has been given a 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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