ESRT vs. GLPI: Which Stock Is the Better Value Option?

ESRT GLPI

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Empire State Realty Trust (ESRT - Free Report) and Gaming and Leisure Properties (GLPI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Empire State Realty Trust and Gaming and Leisure Properties are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ESRT likely has seen a stronger improvement to its earnings outlook than GLPI has recently. 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 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.

ESRT currently has a forward P/E ratio of 10.09, while GLPI has a forward P/E of 12.87. We also note that ESRT has a PEG ratio of 3.15. 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. GLPI currently has a PEG ratio of 4.11.

Another notable valuation metric for ESRT is its P/B ratio of 0.83. 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, GLPI has a P/B of 3.04.

Based on these metrics and many more, ESRT holds a Value grade of B, while GLPI has a Value grade of D.

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

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