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SKT vs. FRT: Which Stock Is the Better Value Option?
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Investors interested in stocks from the REIT and Equity Trust - Retail sector have probably already heard of Tanger Factory Outlet (SKT - Free Report) and Federal Realty Investment Trust (FRT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Currently, both Tanger Factory Outlet and Federal Realty Investment Trust are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SKT currently has a forward P/E ratio of 10.09, while FRT has a forward P/E of 20.96. We also note that SKT has a PEG ratio of 1.21. 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. FRT currently has a PEG ratio of 3.87.
Another notable valuation metric for SKT is its P/B ratio of 3.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FRT has a P/B of 3.86.
These metrics, and several others, help SKT earn a Value grade of B, while FRT has been given a Value grade of D.
Both SKT and FRT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKT is the superior value option right now.
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SKT vs. FRT: Which Stock Is the Better Value Option?
Investors interested in stocks from the REIT and Equity Trust - Retail sector have probably already heard of Tanger Factory Outlet (SKT - Free Report) and Federal Realty Investment Trust (FRT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Currently, both Tanger Factory Outlet and Federal Realty Investment Trust are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SKT currently has a forward P/E ratio of 10.09, while FRT has a forward P/E of 20.96. We also note that SKT has a PEG ratio of 1.21. 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. FRT currently has a PEG ratio of 3.87.
Another notable valuation metric for SKT is its P/B ratio of 3.64. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FRT has a P/B of 3.86.
These metrics, and several others, help SKT earn a Value grade of B, while FRT has been given a Value grade of D.
Both SKT and FRT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKT is the superior value option right now.