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SKT vs. FRT: Which Stock Should Value Investors Buy Now?
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Investors interested in REIT and Equity Trust - Retail stocks are likely familiar with Tanger Factory Outlet (SKT - Free Report) and Federal Realty Investment Trust (FRT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Tanger Factory Outlet has a Zacks Rank of #2 (Buy), while Federal Realty Investment Trust 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 SKT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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 9.27, while FRT has a forward P/E of 18.40. We also note that SKT has a PEG ratio of 1.13. 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. FRT currently has a PEG ratio of 3.16.
Another notable valuation metric for SKT is its P/B ratio of 3.29. 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, FRT has a P/B of 3.37.
These metrics, and several others, help SKT earn a Value grade of B, while FRT has been given a Value grade of D.
SKT stands above FRT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SKT is the superior value option right now.
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SKT vs. FRT: Which Stock Should Value Investors Buy Now?
Investors interested in REIT and Equity Trust - Retail stocks are likely familiar with Tanger Factory Outlet (SKT - Free Report) and Federal Realty Investment Trust (FRT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Tanger Factory Outlet has a Zacks Rank of #2 (Buy), while Federal Realty Investment Trust 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 SKT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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 9.27, while FRT has a forward P/E of 18.40. We also note that SKT has a PEG ratio of 1.13. 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. FRT currently has a PEG ratio of 3.16.
Another notable valuation metric for SKT is its P/B ratio of 3.29. 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, FRT has a P/B of 3.37.
These metrics, and several others, help SKT earn a Value grade of B, while FRT has been given a Value grade of D.
SKT stands above FRT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SKT is the superior value option right now.