Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Outfront Media (OUT) or Public Storage (PSA). 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.
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 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, Outfront Media has a Zacks Rank of #2 (Buy), while Public Storage has a Zacks Rank of #4 (Sell). This means that OUT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
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.
OUT currently has a forward P/E ratio of 11.58, while PSA has a forward P/E of 17.60. We also note that OUT has a PEG ratio of 1.16. 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. PSA currently has a PEG ratio of 10.18.
Another notable valuation metric for OUT is its P/B ratio of 7.7. 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, PSA has a P/B of 10.56.
These metrics, and several others, help OUT earn a Value grade of B, while PSA has been given a Value grade of F.
OUT sticks out from PSA in both our Zacks Rank and Style Scores models, so value investors will likely feel that OUT is the better option right now.
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OUTFRONT Media Inc. (OUT): Free Stock Analysis Report Public Storage (PSA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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