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Newmark Group, Inc. (NMRK) - free report >>
Essential Properties Realty Trust, Inc. (EPRT) - free report >>
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Newmark Group, Inc. (NMRK) - free report >>
Essential Properties Realty Trust, Inc. (EPRT) - free report >>
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NMRK vs. EPRT: Which Stock Is the Better Value Option?
Investors interested in stocks from the Real Estate - Operations sector have probably already heard of Newmark Group (NMRK - Free Report) and Essential Properties Realty Trust, Inc. (EPRT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Newmark Group has a Zacks Rank of #2 (Buy), while Essential Properties Realty Trust, Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NMRK 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.
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.
NMRK currently has a forward P/E ratio of 4.78, while EPRT has a forward P/E of 17.43. We also note that NMRK has a PEG ratio of 0.48. 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. EPRT currently has a PEG ratio of 2.12.
Another notable valuation metric for NMRK is its P/B ratio of 1.36. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EPRT has a P/B of 1.45.
Based on these metrics and many more, NMRK holds a Value grade of A, while EPRT has a Value grade of F.
NMRK sticks out from EPRT in both our Zacks Rank and Style Scores models, so value investors will likely feel that NMRK is the better option right now.