Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Paramount Group (PGRE - Free Report) and Lexington Realty (LXP - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Paramount Group is sporting a Zacks Rank of #2 (Buy), while Lexington Realty has a Zacks Rank of #3 (Hold). This means that PGRE'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.
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.
PGRE currently has a forward P/E ratio of 9.30, while LXP has a forward P/E of 20.55. We also note that PGRE has a PEG ratio of 9.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LXP currently has a PEG ratio of 13.43.
Another notable valuation metric for PGRE is its P/B ratio of 0.42. 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, LXP has a P/B of 2.21.
These are just a few of the metrics contributing to PGRE's Value grade of B and LXP's Value grade of C.
PGRE has seen stronger estimate revision activity and sports more attractive valuation metrics than LXP, so it seems like value investors will conclude that PGRE is the superior option right now.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Paramount Group (PGRE - Free Report) and Lexington Realty (LXP - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Paramount Group is sporting a Zacks Rank of #2 (Buy), while Lexington Realty has a Zacks Rank of #3 (Hold). This means that PGRE'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.
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.
PGRE currently has a forward P/E ratio of 9.30, while LXP has a forward P/E of 20.55. We also note that PGRE has a PEG ratio of 9.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LXP currently has a PEG ratio of 13.43.
Another notable valuation metric for PGRE is its P/B ratio of 0.42. 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, LXP has a P/B of 2.21.
These are just a few of the metrics contributing to PGRE's Value grade of B and LXP's Value grade of C.
PGRE has seen stronger estimate revision activity and sports more attractive valuation metrics than LXP, so it seems like value investors will conclude that PGRE is the superior option right now.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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