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

ADC EPR

Investors interested in stocks from the REIT and Equity Trust - Retail sector have probably already heard of 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.

Currently, EPR Properties has a Zacks Rank of #2 (Buy), while Agree Realty has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EPR has an improving earnings outlook. 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 8.42, while ADC has a forward P/E of 17.86. We also note that EPR has a PEG ratio of 0.94. 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. ADC currently has a PEG ratio of 2.94.

Another notable valuation metric for EPR is its P/B ratio of 1.21. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ADC has a P/B of 1.40.

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

EPR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EPR is likely the superior value option right now.

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