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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Community Healthcare Trust (CHCT) and Sabra Healthcare (SBRA). 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.
Both Community Healthcare Trust and Sabra Healthcare have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
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.
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.
CHCT currently has a forward P/E ratio of 8.79, while SBRA has a forward P/E of 11.41. We also note that CHCT has a PEG ratio of 1.10. 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. SBRA currently has a PEG ratio of 1.99.
Another notable valuation metric for CHCT is its P/B ratio of 1.15. 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, SBRA has a P/B of 1.46.
These are just a few of the metrics contributing to CHCT's Value grade of B and SBRA's Value grade of C.
Both CHCT and SBRA 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
Sabra Healthcare REIT, Inc. (SBRA) : Free Stock Analysis Report