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JLL vs. RMAX: Which Stock Is the Better Value Option?

Zacks Equity Research
Below we share with you four top-ranked Prudential Investments mutual funds. Each has earned a Zacks Mutual Fund Rank 1 (Strong Buy).

Investors looking for stocks in the Real Estate - Operations sector might want to consider either Jones Lang LaSalle (JLL) or RE/MAX (RMAX). 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Jones Lang LaSalle and RE/MAX are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JLL is likely seeing its earnings outlook improve to a greater extent. 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 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 13.18, while RMAX has a forward P/E of 17.80. We also note that JLL has a PEG ratio of 1.46. 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. RMAX currently has a PEG ratio of 2.54.

Another notable valuation metric for JLL is its P/B ratio of 1.86. 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, RMAX has a P/B of 8.96.

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

JLL has seen stronger estimate revision activity and sports more attractive valuation metrics than RMAX, so it seems like value investors will conclude that JLL is the superior option right now.


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Jones Lang LaSalle Incorporated (JLL) : Free Stock Analysis Report
 
RE/MAX Holdings, Inc. (RMAX) : Free Stock Analysis Report
 
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