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DHC vs. PEAK: Which Stock Is the Better Value Option?
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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Diversified Healthcare (DHC - Free Report) and Healthpeak . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Diversified Healthcare has a Zacks Rank of #2 (Buy), while Healthpeak has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DHC has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
DHC currently has a forward P/E ratio of 4.44, while PEAK has a forward P/E of 17.53. We also note that DHC has a PEG ratio of 0.44. 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. PEAK currently has a PEG ratio of 6.24.
Another notable valuation metric for DHC is its P/B ratio of 0.31. 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, PEAK has a P/B of 2.01.
These are just a few of the metrics contributing to DHC's Value grade of A and PEAK's Value grade of D.
DHC stands above PEAK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DHC is the superior value option right now.
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DHC vs. PEAK: Which Stock Is the Better Value Option?
Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Diversified Healthcare (DHC - Free Report) and Healthpeak . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Diversified Healthcare has a Zacks Rank of #2 (Buy), while Healthpeak has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DHC has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
DHC currently has a forward P/E ratio of 4.44, while PEAK has a forward P/E of 17.53. We also note that DHC has a PEG ratio of 0.44. 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. PEAK currently has a PEG ratio of 6.24.
Another notable valuation metric for DHC is its P/B ratio of 0.31. 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, PEAK has a P/B of 2.01.
These are just a few of the metrics contributing to DHC's Value grade of A and PEAK's Value grade of D.
DHC stands above PEAK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DHC is the superior value option right now.