Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Alpine Income (PINE) or Omega Healthcare Investors (OHI). 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.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Alpine Income has a Zacks Rank of #1 (Strong Buy), while Omega Healthcare Investors has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PINE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PINE currently has a forward P/E ratio of 8.56, while OHI has a forward P/E of 13.98. We also note that PINE has a PEG ratio of 1.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OHI currently has a PEG ratio of 1.83.
Another notable valuation metric for PINE is its P/B ratio of 0.98. 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 2.54.
Based on these metrics and many more, PINE holds a Value grade of B, while OHI has a Value grade of D.
PINE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PINE is likely the superior value option right now.
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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).
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