Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Alpine Income (PINE) and Omega Healthcare Investors (OHI). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Currently, Alpine Income has a Zacks Rank of #2 (Buy), while Omega Healthcare Investors has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PINE likely has seen a stronger improvement to its earnings outlook than OHI 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.
PINE currently has a forward P/E ratio of 9.45, while OHI has a forward P/E of 14.89. We also note that PINE has a PEG ratio of 1.58. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OHI currently has a PEG ratio of 1.95.
Another notable valuation metric for PINE is its P/B ratio of 0.99. 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, OHI has a P/B of 2.58.
Based on these metrics and many more, PINE holds a Value grade of B, while OHI has a Value grade of D.
PINE stands above OHI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PINE is the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alpine Income Property Trust, Inc. (PINE): Free Stock Analysis Report Omega Healthcare Investors, Inc. (OHI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
