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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Strawberry Fields REIT, Inc. (STRW) and National Health Investors (NHI). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Strawberry Fields REIT, Inc. has a Zacks Rank of #2 (Buy), while National Health Investors has a Zacks Rank of #3 (Hold) right now. This means that STRW'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 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 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.
STRW currently has a forward P/E ratio of 9.15, while NHI has a forward P/E of 14.96. We also note that STRW has a PEG ratio of 1.14. 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. NHI currently has a PEG ratio of 4.42.
Another notable valuation metric for STRW is its P/B ratio of 1.44. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NHI has a P/B of 2.44.
Based on these metrics and many more, STRW holds a Value grade of A, while NHI has a Value grade of D.
STRW 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 STRW is likely the superior value option right now.
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Strawberry Fields REIT, Inc. (STRW) : Free Stock Analysis Report
National Health Investors, Inc. (NHI) : Free Stock Analysis Report