In This Article:
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Global Medical REIT (GMRE) or COPT Defense (CDP). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Both Global Medical REIT and COPT Defense 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 just one piece of the puzzle 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GMRE currently has a forward P/E ratio of 10.80, while CDP has a forward P/E of 11.85. We also note that GMRE has a PEG ratio of 1.35. 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. CDP currently has a PEG ratio of 2.64.
Another notable valuation metric for GMRE is its P/B ratio of 1.29. 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, CDP has a P/B of 2.24.
Based on these metrics and many more, GMRE holds a Value grade of B, while CDP has a Value grade of C.
Both GMRE and CDP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GMRE 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
Global Medical REIT Inc. (GMRE) : Free Stock Analysis Report
COPT Defense Properties (CDP) : Free Stock Analysis Report