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RHP vs. COR: Which Stock Is the Better Value Option?

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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Ryman Hospitality Properties (RHP - Free Report) or CoreSite Realty (COR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.

Ryman Hospitality Properties and CoreSite Realty are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that RHP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

RHP currently has a forward P/E ratio of 12.98, while COR has a forward P/E of 22.17. We also note that RHP has a PEG ratio of 1.69. 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. COR currently has a PEG ratio of 1.70.

Another notable valuation metric for RHP is its P/B ratio of 14.74. 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, COR has a P/B of 17.56.

These metrics, and several others, help RHP earn a Value grade of B, while COR has been given a Value grade of D.

RHP has seen stronger estimate revision activity and sports more attractive valuation metrics than COR, so it seems like value investors will conclude that RHP is the superior option right now.


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