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PINE vs. SBRA: Which Stock Is the Better Value Option?

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Alpine Income (PINE - Free Report) and Sabra Healthcare (SBRA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, both Alpine Income and Sabra Healthcare are sporting 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 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

PINE currently has a forward P/E ratio of 11.09, while SBRA has a forward P/E of 11.82. We also note that PINE has a PEG ratio of 1.85. 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. SBRA currently has a PEG ratio of 2.35.

Another notable valuation metric for PINE is its P/B ratio of 0.93. 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, SBRA has a P/B of 1.39.

Based on these metrics and many more, PINE holds a Value grade of B, while SBRA has a Value grade of C.

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


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Sabra Healthcare REIT, Inc. (SBRA) - free report >>

Alpine Income Property Trust, Inc. (PINE) - free report >>

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