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DHC vs. EGP: Which Stock Is the Better Value Option?
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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Diversified Healthcare (DHC - Free Report) and EastGroup Properties (EGP - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Diversified Healthcare and EastGroup Properties are holding 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. However, value investors will care about much more than just this.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DHC currently has a forward P/E ratio of 7.55, while EGP has a forward P/E of 23.03. We also note that DHC has a PEG ratio of 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EGP currently has a PEG ratio of 3.54.
Another notable valuation metric for DHC is its P/B ratio of 0.27. 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 3.73.
These metrics, and several others, help DHC earn a Value grade of A, while EGP has been given a Value grade of D.
Both DHC and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DHC is the superior value option right now.
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DHC vs. EGP: Which Stock Is the Better Value Option?
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Diversified Healthcare (DHC - Free Report) and EastGroup Properties (EGP - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Diversified Healthcare and EastGroup Properties are holding 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. However, value investors will care about much more than just this.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
DHC currently has a forward P/E ratio of 7.55, while EGP has a forward P/E of 23.03. We also note that DHC has a PEG ratio of 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EGP currently has a PEG ratio of 3.54.
Another notable valuation metric for DHC is its P/B ratio of 0.27. 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 3.73.
These metrics, and several others, help DHC earn a Value grade of A, while EGP has been given a Value grade of D.
Both DHC and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DHC is the superior value option right now.