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EPR vs. ADC: Which Stock Should Value Investors Buy Now?
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Investors interested in REIT and Equity Trust - Retail stocks are likely familiar with EPR Properties (EPR - Free Report) and Agree Realty (ADC - Free Report) . 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
EPR Properties and Agree Realty are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EPR is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
EPR currently has a forward P/E ratio of 10.41, while ADC has a forward P/E of 18.84. We also note that EPR has a PEG ratio of 0.83. 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. ADC currently has a PEG ratio of 2.47.
Another notable valuation metric for EPR is its P/B ratio of 1.39. 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, ADC has a P/B of 1.50.
Based on these metrics and many more, EPR holds a Value grade of B, while ADC has a Value grade of D.
EPR sticks out from ADC in both our Zacks Rank and Style Scores models, so value investors will likely feel that EPR is the better option right now.
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EPR vs. ADC: Which Stock Should Value Investors Buy Now?
Investors interested in REIT and Equity Trust - Retail stocks are likely familiar with EPR Properties (EPR - Free Report) and Agree Realty (ADC - Free Report) . 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
EPR Properties and Agree Realty are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EPR is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
EPR currently has a forward P/E ratio of 10.41, while ADC has a forward P/E of 18.84. We also note that EPR has a PEG ratio of 0.83. 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. ADC currently has a PEG ratio of 2.47.
Another notable valuation metric for EPR is its P/B ratio of 1.39. 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, ADC has a P/B of 1.50.
Based on these metrics and many more, EPR holds a Value grade of B, while ADC has a Value grade of D.
EPR sticks out from ADC in both our Zacks Rank and Style Scores models, so value investors will likely feel that EPR is the better option right now.