JLL vs. RMAX: Which Stock Is the Better Value Option?
Investors interested in Real Estate - Operations stocks are likely familiar with Jones Lang LaSalle (JLL) and RE/MAX (RMAX). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, Jones Lang LaSalle is sporting a Zacks Rank of #2 (Buy), while RE/MAX has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that JLL likely has seen a stronger improvement to its earnings outlook than RMAX 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
JLL currently has a forward P/E ratio of 11.45, while RMAX has a forward P/E of 12.94. We also note that JLL has a PEG ratio of 1.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RMAX currently has a PEG ratio of 1.85.
Another notable valuation metric for JLL is its P/B ratio of 1.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RMAX has a P/B of 7.17.
Based on these metrics and many more, JLL holds a Value grade of A, while RMAX has a Value grade of C.
JLL stands above RMAX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JLL is the superior value 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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