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MPW vs. SLG: Which Stock Is the Better Value Option?
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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Medical Properties (MPW - Free Report) and SL Green (SLG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Medical Properties is sporting a Zacks Rank of #2 (Buy), while SL Green has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MPW has an improving earnings outlook. But this is just one piece of the puzzle 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
MPW currently has a forward P/E ratio of 5.65, while SLG has a forward P/E of 8.85. We also note that MPW has a PEG ratio of 0.71. 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. SLG currently has a PEG ratio of 2.14.
Another notable valuation metric for MPW is its P/B ratio of 0.45. 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, SLG has a P/B of 1.16.
Based on these metrics and many more, MPW holds a Value grade of B, while SLG has a Value grade of D.
MPW stands above SLG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MPW is the superior value option right now.
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MPW vs. SLG: Which Stock Is the Better Value Option?
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Medical Properties (MPW - Free Report) and SL Green (SLG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Medical Properties is sporting a Zacks Rank of #2 (Buy), while SL Green has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MPW has an improving earnings outlook. But this is just one piece of the puzzle 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
MPW currently has a forward P/E ratio of 5.65, while SLG has a forward P/E of 8.85. We also note that MPW has a PEG ratio of 0.71. 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. SLG currently has a PEG ratio of 2.14.
Another notable valuation metric for MPW is its P/B ratio of 0.45. 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, SLG has a P/B of 1.16.
Based on these metrics and many more, MPW holds a Value grade of B, while SLG has a Value grade of D.
MPW stands above SLG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MPW is the superior value option right now.