Critical Comparison: Jones Lang LaSalle (NYSE:JLL) versus The Competition

Jones Lang LaSalle (NYSE: JLL) is one of 26 public companies in the “Real Estate Services” industry, but how does it weigh in compared to its peers? We will compare Jones Lang LaSalle to related businesses based on the strength of its profitability, analyst recommendations, risk, institutional ownership, dividends, earnings and valuation.

Profitability

This table compares Jones Lang LaSalle and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jones Lang LaSalle 4.52% 12.55% 4.93%
Jones Lang LaSalle Competitors 5.51% 16.19% 3.67%

Earnings and Valuation

This table compares Jones Lang LaSalle and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Jones Lang LaSalle $6.80 billion $318.20 million 19.54
Jones Lang LaSalle Competitors $2.12 billion $70.79 million -1,316.55

Jones Lang LaSalle has higher revenue and earnings than its peers. Jones Lang LaSalle is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Jones Lang LaSalle has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Jones Lang LaSalle’s peers have a beta of 1.54, suggesting that their average stock price is 54% more volatile than the S&P 500.

Dividends

Jones Lang LaSalle pays an annual dividend of $0.70 per share and has a dividend yield of 0.5%. Jones Lang LaSalle pays out 9.4% of its earnings in the form of a dividend. As a group, “Real Estate Services” companies pay a dividend yield of 1.3% and pay out 38.9% of their earnings in the form of a dividend. Jones Lang LaSalle has raised its dividend for 6 consecutive years.

Insider and Institutional Ownership

90.1% of Jones Lang LaSalle shares are held by institutional investors. Comparatively, 72.5% of shares of all “Real Estate Services” companies are held by institutional investors. 0.7% of Jones Lang LaSalle shares are held by company insiders. Comparatively, 11.7% of shares of all “Real Estate Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Jones Lang LaSalle and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jones Lang LaSalle 0 3 4 0 2.57
Jones Lang LaSalle Competitors 104 420 690 18 2.50

Jones Lang LaSalle currently has a consensus price target of $131.80, indicating a potential downside of 9.58%. As a group, “Real Estate Services” companies have a potential upside of 7.10%. Given Jones Lang LaSalle’s peers higher possible upside, analysts clearly believe Jones Lang LaSalle has less favorable growth aspects than its peers.

Summary

Jones Lang LaSalle beats its peers on 9 of the 15 factors compared.

About Jones Lang LaSalle

Jones Lang LaSalle Incorporated (JLL) is a financial and professional services company specializing in real estate. The Company operates through four business segments: Americas; Europe, Middle East and Africa (EMEA); Asia Pacific, and LaSalle. It offers integrated services on a local, regional and global basis to owner, occupier, investor and developer clients. It delivers various real estate services (RES) across three geographic business segments: the Americas, EMEA and Asia Pacific. Its RES is organized into five product categories: leasing; capital markets and hotels; property and facility management; project and development services, and advisory, consulting and other services. LaSalle offers clients with real estate investment products and services, such as private investments in multiple real estate property types, including office, industrial, healthcare and multifamily residential. LaSalle enables clients to invest in separate accounts focused on public real estate equities.

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