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CORR vs. VTR: Which Stock Is the Better Value Option?

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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of CorEnergy and Ventas (VTR - Free Report) . 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.

Right now, CorEnergy is sporting a Zacks Rank of #2 (Buy), while Ventas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CORR likely has seen a stronger improvement to its earnings outlook than VTR has recently. However, value investors will care about much more than just this.

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 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.

CORR currently has a forward P/E ratio of 10.28, while VTR has a forward P/E of 17.87. We also note that CORR has a PEG ratio of 2.06. 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. VTR currently has a PEG ratio of 4.47.

Another notable valuation metric for CORR is its P/B ratio of 1.43. 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, VTR has a P/B of 2.40.

These are just a few of the metrics contributing to CORR's Value grade of B and VTR's Value grade of D.

CORR stands above VTR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CORR is the superior value option right now.


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