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GEO vs. VTR: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Geo Group (GEO - Free Report) or Ventas (VTR - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Geo Group is sporting a Zacks Rank of #2 (Buy), while Ventas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GEO likely has seen a stronger improvement to its earnings outlook than VTR has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GEO currently has a forward P/E ratio of 4.84, while VTR has a forward P/E of 13.88. We also note that GEO has a PEG ratio of 0.48. 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. VTR currently has a PEG ratio of 4.63.
Another notable valuation metric for GEO is its P/B ratio of 1.44. 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, VTR has a P/B of 1.59.
Based on these metrics and many more, GEO holds a Value grade of A, while VTR has a Value grade of C.
GEO has seen stronger estimate revision activity and sports more attractive valuation metrics than VTR, so it seems like value investors will conclude that GEO is the superior option right now.
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GEO vs. VTR: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Geo Group (GEO - Free Report) or Ventas (VTR - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Geo Group is sporting a Zacks Rank of #2 (Buy), while Ventas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GEO likely has seen a stronger improvement to its earnings outlook than VTR has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GEO currently has a forward P/E ratio of 4.84, while VTR has a forward P/E of 13.88. We also note that GEO has a PEG ratio of 0.48. 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. VTR currently has a PEG ratio of 4.63.
Another notable valuation metric for GEO is its P/B ratio of 1.44. 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, VTR has a P/B of 1.59.
Based on these metrics and many more, GEO holds a Value grade of A, while VTR has a Value grade of C.
GEO has seen stronger estimate revision activity and sports more attractive valuation metrics than VTR, so it seems like value investors will conclude that GEO is the superior option right now.