Time New York: Mon 10 Dec 17:56 pm  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

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

Zacks

Investors looking for stocks in the Real Estate – Operations sector might want to consider either CBRE Group (CBRE) or RE/MAX (RMAX). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

CBRE Group and RE/MAX are sporting Zacks Ranks of #2 (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 CBRE is likely seeing its earnings outlook improve to a greater extent. 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.

CBRE currently has a forward P/E ratio of 13.04, while RMAX has a forward P/E of 18.38. We also note that CBRE has a PEG ratio of 1. 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. RMAX currently has a PEG ratio of 2.63.

Another notable valuation metric for CBRE is its P/B ratio of 3.10. 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 12.34.

Based on these metrics and many more, CBRE holds a Value grade of B, while RMAX has a Value grade of C.

CBRE 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 CBRE is likely the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.

Automated WordPress Blogs