EPR or ADC: Which Is the Better Value Stock Right Now?

ADC EPR

Investors looking for stocks in the REIT and Equity Trust - Retail sector might want to consider either EPR Properties (EPR - Free Report) or 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.

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.

Right now, EPR Properties is sporting a Zacks Rank of #2 (Buy), while Agree Realty has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EPR likely has seen a stronger improvement to its earnings outlook than ADC has recently. But this is just one factor that value investors are interested in.

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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

EPR currently has a forward P/E ratio of 8.51, while ADC has a forward P/E of 18.26. We also note that EPR has a PEG ratio of 0.95. 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. ADC currently has a PEG ratio of 3.24.

Another notable valuation metric for EPR is its P/B ratio of 1.22. 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 1.28.

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

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

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