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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Community Healthcare Trust (CHCT) or SL Green (SLG). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Community Healthcare Trust and SL Green are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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 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.
CHCT currently has a forward P/E ratio of 8.49, while SLG has a forward P/E of 10.02. We also note that CHCT has a PEG ratio of 1.06. 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. SLG currently has a PEG ratio of 2.01.
Another notable valuation metric for CHCT is its P/B ratio of 1.11. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SLG has a P/B of 1.34.
Based on these metrics and many more, CHCT holds a Value grade of B, while SLG has a Value grade of D.
Both CHCT and SLG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CHCT is the superior value option right now.
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Community Healthcare Trust Incorporated (CHCT) : Free Stock Analysis Report
SL Green Realty Corporation (SLG) : Free Stock Analysis Report