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NMRK vs. BEKE: Which Stock Is the Better Value Option?
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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 presents investors with the better value opportunity right now? Let's 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.
Newmark Group has a Zacks Rank of #2 (Buy), while KE Holdings Inc. Sponsored ADR has a Zacks Rank of #5 (Strong Sell) right now. This means that NMRK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
NMRK currently has a forward P/E ratio of 8.63, while BEKE has a forward P/E of 46.94. We also note that NMRK has a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BEKE currently has a PEG ratio of 3.89.
Another notable valuation metric for NMRK is its P/B ratio of 1.82. 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, BEKE has a P/B of 1.86.
These metrics, and several others, help NMRK earn a Value grade of A, while BEKE has been given a Value grade of D.
NMRK stands above BEKE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NMRK is the superior value option right now.
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NMRK vs. BEKE: Which Stock Is the Better Value Option?
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 presents investors with the better value opportunity right now? Let's 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.
Newmark Group has a Zacks Rank of #2 (Buy), while KE Holdings Inc. Sponsored ADR has a Zacks Rank of #5 (Strong Sell) right now. This means that NMRK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
NMRK currently has a forward P/E ratio of 8.63, while BEKE has a forward P/E of 46.94. We also note that NMRK has a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BEKE currently has a PEG ratio of 3.89.
Another notable valuation metric for NMRK is its P/B ratio of 1.82. 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, BEKE has a P/B of 1.86.
These metrics, and several others, help NMRK earn a Value grade of A, while BEKE has been given a Value grade of D.
NMRK stands above BEKE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NMRK is the superior value option right now.