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GNL or OHI: Which Is the Better Value Stock Right Now?

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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Global Net Lease (GNL - Free Report) and Omega Healthcare Investors (OHI - Free Report) . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Global Net Lease has a Zacks Rank of #2 (Buy), while Omega Healthcare Investors has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that GNL likely has seen a stronger improvement to its earnings outlook than OHI has recently. 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 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.

GNL currently has a forward P/E ratio of 7.69, while OHI has a forward P/E of 9.84. We also note that GNL has a PEG ratio of 1.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OHI currently has a PEG ratio of 6.07.

Another notable valuation metric for GNL is its P/B ratio of 0.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, OHI has a P/B of 1.60.

These are just a few of the metrics contributing to GNL's Value grade of B and OHI's Value grade of C.

GNL sticks out from OHI in both our Zacks Rank and Style Scores models, so value investors will likely feel that GNL is the better option right now.


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Omega Healthcare Investors, Inc. (OHI) - free report >>

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