Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of Preferred Apartment Communities and RPT Realty . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Preferred Apartment Communities and RPT Realty are holding a Zacks Rank of # 2 (Buy). 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 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 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.
APTS currently has a forward P/E ratio of 13.84, while RPT has a forward P/E of 14.83. We also note that APTS has a PEG ratio of 1.98. 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. RPT currently has a PEG ratio of 2.28.
Another notable valuation metric for APTS is its P/B ratio of 0.44. 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, RPT has a P/B of 1.37.
These are just a few of the metrics contributing to APTS's Value grade of A and RPT's Value grade of C.
Both APTS and RPT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that APTS is the superior value option right now.
Image: Bigstock
APTS vs. RPT: Which Stock Is the Better Value Option?
Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of Preferred Apartment Communities and RPT Realty . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Preferred Apartment Communities and RPT Realty are holding a Zacks Rank of # 2 (Buy). 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 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 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.
APTS currently has a forward P/E ratio of 13.84, while RPT has a forward P/E of 14.83. We also note that APTS has a PEG ratio of 1.98. 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. RPT currently has a PEG ratio of 2.28.
Another notable valuation metric for APTS is its P/B ratio of 0.44. 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, RPT has a P/B of 1.37.
These are just a few of the metrics contributing to APTS's Value grade of A and RPT's Value grade of C.
Both APTS and RPT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that APTS is the superior value option right now.