Investors interested in REIT and Equity Trust - Other stocks are likely familiar with MGM Growth Properties and InfraREIT . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
MGM Growth Properties and InfraREIT are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that MGP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
MGP currently has a forward P/E ratio of 14.91, while HIFR has a forward P/E of 16.68. We also note that MGP has a PEG ratio of 1.50. 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. HIFR currently has a PEG ratio of 3.34.
Another notable valuation metric for MGP is its P/B ratio of 0.36. 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, HIFR has a P/B of 1.03.
Based on these metrics and many more, MGP holds a Value grade of A, while HIFR has a Value grade of C.
MGP stands above HIFR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MGP is the superior value option right now.
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MGP or HIFR: Which Is the Better Value Stock Right Now?
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with MGM Growth Properties and InfraREIT . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
MGM Growth Properties and InfraREIT are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that MGP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
MGP currently has a forward P/E ratio of 14.91, while HIFR has a forward P/E of 16.68. We also note that MGP has a PEG ratio of 1.50. 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. HIFR currently has a PEG ratio of 3.34.
Another notable valuation metric for MGP is its P/B ratio of 0.36. 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, HIFR has a P/B of 1.03.
Based on these metrics and many more, MGP holds a Value grade of A, while HIFR has a Value grade of C.
MGP stands above HIFR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MGP is the superior value option right now.