NMRK vs. BEKE: Which stock is the better value option?
IInvestors with an interest in real estate – operating stocks have likely encountered both Newmark Group (NMRK) and KE Holdings Inc. Sponsored ADR (BEKE). But which of these two stocks offers investors the best value opportunity right now? Let’s take a closer look.
There are many strategies for uncovering value stocks, but we’ve found that combining a strong Zacks ranking with an impressive rating in the Value category of our Style Scores system produces the best returns. The proven Zacks ranking emphasizes earnings estimates and estimate revisions, while our style scores identify stocks with specific characteristics.
Newmark Group has a Zacks rank of #2 (Buy), while KE Holdings Inc. Sponsored ADR has a Zacks rank of #5 (Strong Sell) at this time. This means NMRK’s earnings estimate revision activity has been more impressive, so investors should feel comfortable with analysts’ improved outlook. But this is only one factor that interests value investors.
Value investors also try to analyze a wide range of traditional numbers and metrics to help determine if a company is undervalued at its current stock price level.
The Style Score Value rating takes into account a variety of key fundamental measures, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share and a number of other key statistics commonly used by value investors.
NMRK currently has a forward P/E 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 measure is similar to the widely known P/E ratio, except 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/E ratio of 1.82. P/B is a method of comparing the market value of a stock to its book value, which is defined as total assets minus total liabilities. In comparison, BEKE has a P/B of 1.86.
These measures, and several others, help NMRK earn an A value rating, while BEKE received a D value rating.
NMRK ranks above BEKE thanks to its strong earnings outlook, and based on these valuation numbers, we also believe that NMRK is the superior value option at this time.
Just Released: The Biggest Tech IPOs of 2022
For a limited time, Zacks reveals the most anticipated tech IPOs set to launch this year. Worries over federal interest rates and inflation have kept many private companies on the bench, leading companies with better brand recognition and higher growth rates to enter the game. With the strength of our economy and record amounts of money pouring into IPOs, you don’t want to miss this opportunity. See the full list today.
>> See Zacks’ Hottest IPOs Now
Click to get this free report
Newmark Group, Inc. (NMRK): Free Stock Analysis Report
KE Holdings Inc. Sponsored ADR (BEKE): Free Stock Analysis Report
To read this article on Zacks.com, click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.