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MGP vs. REXR: Which Stock Should Value Investors Buy Now?

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with MGM Growth Properties and Rexford Industrial (REXR - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

MGM Growth Properties and Rexford Industrial are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

MGP currently has a forward P/E ratio of 14.53, while REXR has a forward P/E of 40.06. We also note that MGP has a PEG ratio of 1.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REXR currently has a PEG ratio of 4.57.

Another notable valuation metric for MGP is its P/B ratio of 1.11. 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, REXR has a P/B of 2.31.

Based on these metrics and many more, MGP holds a Value grade of B, while REXR has a Value grade of F.

Both MGP and REXR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MGP is the superior value option right now.


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