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PGRE or CDP: Which Is the Better Value Stock Right Now?

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Paramount Group (PGRE - Free Report) and COPT Defense (CDP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, both Paramount Group and COPT Defense 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. But this is just one factor that value investors are interested in.

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.

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.

PGRE currently has a forward P/E ratio of 6.58, while CDP has a forward P/E of 10.89. We also note that PGRE has a PEG ratio of 0.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CDP currently has a PEG ratio of 2.66.

Another notable valuation metric for PGRE is its P/B ratio of 0.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CDP has a P/B of 2.05.

Based on these metrics and many more, PGRE holds a Value grade of A, while CDP has a Value grade of C.

Both PGRE and CDP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PGRE is the superior value option right now.


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Paramount Group, Inc. (PGRE) - free report >>

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