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MPW vs. OHI: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Medical Properties (MPW - Free Report) and Omega Healthcare Investors (OHI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Medical Properties and Omega Healthcare Investors are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that MPW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 4.98, while OHI has a forward P/E of 14.18. We also note that MPW has a PEG ratio of 0.62. 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. OHI currently has a PEG ratio of 1.40.
Another notable valuation metric for MPW is its P/B ratio of 0.44. 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, OHI has a P/B of 2.61.
These metrics, and several others, help MPW earn a Value grade of B, while OHI has been given a Value grade of D.
MPW has seen stronger estimate revision activity and sports more attractive valuation metrics than OHI, so it seems like value investors will conclude that MPW is the superior option right now.
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MPW vs. OHI: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Medical Properties (MPW - Free Report) and Omega Healthcare Investors (OHI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Medical Properties and Omega Healthcare Investors are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that MPW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 4.98, while OHI has a forward P/E of 14.18. We also note that MPW has a PEG ratio of 0.62. 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. OHI currently has a PEG ratio of 1.40.
Another notable valuation metric for MPW is its P/B ratio of 0.44. 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, OHI has a P/B of 2.61.
These metrics, and several others, help MPW earn a Value grade of B, while OHI has been given a Value grade of D.
MPW has seen stronger estimate revision activity and sports more attractive valuation metrics than OHI, so it seems like value investors will conclude that MPW is the superior option right now.