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SKT vs. EQIX: Which Stock Is the Better Value Option?
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Investors interested in stocks from the REIT and Equity Trust - Retail sector have probably already heard of Tanger Factory Outlet (SKT - Free Report) and Equinix (EQIX - Free Report) . 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.
Tanger Factory Outlet has a Zacks Rank of #2 (Buy), while Equinix has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SKT likely has seen a stronger improvement to its earnings outlook than EQIX has recently. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SKT currently has a forward P/E ratio of 9.30, while EQIX has a forward P/E of 18.19. We also note that SKT has a PEG ratio of 1.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EQIX currently has a PEG ratio of 1.92.
Another notable valuation metric for SKT is its P/B ratio of 3.36. 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, EQIX has a P/B of 4.50.
These are just a few of the metrics contributing to SKT's Value grade of B and EQIX's Value grade of D.
SKT 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 SKT is likely the superior value option right now.
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SKT vs. EQIX: Which Stock Is the Better Value Option?
Investors interested in stocks from the REIT and Equity Trust - Retail sector have probably already heard of Tanger Factory Outlet (SKT - Free Report) and Equinix (EQIX - Free Report) . 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.
Tanger Factory Outlet has a Zacks Rank of #2 (Buy), while Equinix has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SKT likely has seen a stronger improvement to its earnings outlook than EQIX has recently. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SKT currently has a forward P/E ratio of 9.30, while EQIX has a forward P/E of 18.19. We also note that SKT has a PEG ratio of 1.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EQIX currently has a PEG ratio of 1.92.
Another notable valuation metric for SKT is its P/B ratio of 3.36. 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, EQIX has a P/B of 4.50.
These are just a few of the metrics contributing to SKT's Value grade of B and EQIX's Value grade of D.
SKT 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 SKT is likely the superior value option right now.