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GEO vs. EGP: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Geo Group (GEO - Free Report) and EastGroup Properties (EGP - Free Report) . 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.
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, both Geo Group and EastGroup Properties are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
GEO currently has a forward P/E ratio of 3.20, while EGP has a forward P/E of 25.21. We also note that GEO has a PEG ratio of 0.32. 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. EGP currently has a PEG ratio of 3.21.
Another notable valuation metric for GEO is its P/B ratio of 0.90. 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, EGP has a P/B of 3.83.
These metrics, and several others, help GEO earn a Value grade of A, while EGP has been given a Value grade of D.
Both GEO and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GEO is the superior value option right now.
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GEO vs. EGP: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Geo Group (GEO - Free Report) and EastGroup Properties (EGP - Free Report) . 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.
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, both Geo Group and EastGroup Properties are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
GEO currently has a forward P/E ratio of 3.20, while EGP has a forward P/E of 25.21. We also note that GEO has a PEG ratio of 0.32. 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. EGP currently has a PEG ratio of 3.21.
Another notable valuation metric for GEO is its P/B ratio of 0.90. 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, EGP has a P/B of 3.83.
These metrics, and several others, help GEO earn a Value grade of A, while EGP has been given a Value grade of D.
Both GEO and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GEO is the superior value option right now.