Investors looking for stocks in the Real Estate - Operations sector might want to consider either Jones Lang LaSalle (JLL) or Landmark Infrastructure Partners (LMRK). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Jones Lang LaSalle has a Zacks Rank of #2 (Buy), while Landmark Infrastructure Partners has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that JLL likely has seen a stronger improvement to its earnings outlook than LMRK has recently. But this is just one piece of the puzzle for value investors.
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 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 11.82, while LMRK has a forward P/E of 31.46. We also note that JLL has a PEG ratio of 1.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LMRK currently has a PEG ratio of 6.29.
Another notable valuation metric for JLL is its P/B ratio of 1.68. 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, LMRK has a P/B of 1.78.
These metrics, and several others, help JLL earn a Value grade of B, while LMRK has been given a Value grade of C.
JLL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that JLL is likely the superior value option right now.
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Jones Lang LaSalle Incorporated (JLL) : Free Stock Analysis Report
Landmark Infrastructure Partners LP (LMRK) : Free Stock Analysis Report
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