Back to top

Image: Bigstock

BRG vs. CPT: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in REIT and Equity Trust - Residential stocks are likely familiar with Bluerock and Camden (CPT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Bluerock is sporting a Zacks Rank of #2 (Buy), while Camden has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BRG is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

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 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.

BRG currently has a forward P/E ratio of 15.10, while CPT has a forward P/E of 26.03. We also note that BRG has a PEG ratio of 2.52. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CPT currently has a PEG ratio of 6.30.

Another notable valuation metric for BRG is its P/B ratio of 3.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CPT has a P/B of 3.73.

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

BRG 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 BRG is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Camden Property Trust (CPT) - free report >>

Published in