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GHLD vs. HASI: Which Stock Is the Better Value Option?

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Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Guild Holdings Company (GHLD - Free Report) and HA Sustainable Infrastructure Capital (HASI - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Guild Holdings Company and HA Sustainable Infrastructure Capital are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that GHLD likely has seen a stronger improvement to its earnings outlook than HASI has recently. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

GHLD currently has a forward P/E ratio of 8.04, while HASI has a forward P/E of 11.10. We also note that GHLD has a PEG ratio of 0.26. 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. HASI currently has a PEG ratio of 0.99.

Another notable valuation metric for GHLD is its P/B ratio of 0.66. 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, HASI has a P/B of 1.45.

These are just a few of the metrics contributing to GHLD's Value grade of B and HASI's Value grade of D.

GHLD stands above HASI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GHLD is the superior value option right now.


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HA Sustainable Infrastructure Capital, Inc. (HASI) - free report >>

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