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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 with an interest in Real Estate - Operations stocks have likely encountered both Newmark Group (NMRK - Free Report) and Essential Properties Realty Trust, Inc. (EPRT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Newmark Group has a Zacks Rank of #2 (Buy), while Essential Properties Realty Trust, Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NMRK is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
NMRK currently has a forward P/E ratio of 5.14, while EPRT has a forward P/E of 18.38. We also note that NMRK has a PEG ratio of 0.61. 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. EPRT currently has a PEG ratio of 1.91.
Another notable valuation metric for NMRK is its P/B ratio of 1.46. 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 1.54.
These are just a few of the metrics contributing to NMRK's Value grade of B and EPRT's Value grade of D.
NMRK has seen stronger estimate revision activity and sports more attractive valuation metrics than EPRT, so it seems like value investors will conclude that NMRK is the superior option right now.