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PGRE 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 Paramount Group (PGRE - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Paramount Group and EastGroup Properties are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PGRE has an improving earnings outlook. But this is only part of the picture 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.

PGRE currently has a forward P/E ratio of 6.44, while EGP has a forward P/E of 23.81. We also note that PGRE has a PEG ratio of 0.25. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGP currently has a PEG ratio of 2.96.

Another notable valuation metric for PGRE is its P/B ratio of 0.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EGP has a P/B of 3.29.

These are just a few of the metrics contributing to PGRE's Value grade of A and EGP's Value grade of F.

PGRE sticks out from EGP in both our Zacks Rank and Style Scores models, so value investors will likely feel that PGRE is the better option right now.


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EastGroup Properties, Inc. (EGP) - free report >>

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