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GNL or EGP: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Global Net Lease (GNL - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Global Net Lease and EastGroup Properties are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GNL is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
GNL currently has a forward P/E ratio of 5.44, while EGP has a forward P/E of 19.23. We also note that GNL has a PEG ratio of 0.91. 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 2.48.
Another notable valuation metric for GNL is its P/B ratio of 0.66. 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 2.89.
These metrics, and several others, help GNL earn a Value grade of A, while EGP has been given a Value grade of F.
GNL has seen stronger estimate revision activity and sports more attractive valuation metrics than EGP, so it seems like value investors will conclude that GNL is the superior option right now.
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GNL or EGP: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Global Net Lease (GNL - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Global Net Lease and EastGroup Properties are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GNL is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
GNL currently has a forward P/E ratio of 5.44, while EGP has a forward P/E of 19.23. We also note that GNL has a PEG ratio of 0.91. 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 2.48.
Another notable valuation metric for GNL is its P/B ratio of 0.66. 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 2.89.
These metrics, and several others, help GNL earn a Value grade of A, while EGP has been given a Value grade of F.
GNL has seen stronger estimate revision activity and sports more attractive valuation metrics than EGP, so it seems like value investors will conclude that GNL is the superior option right now.