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GEO vs. EGP: Which Stock Is the Better Value Option?
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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Geo Group (GEO - Free Report) or EastGroup Properties (EGP - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Geo Group and EastGroup Properties have a Zacks Rank of # 2 (Buy) right now. 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 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.
GEO currently has a forward P/E ratio of 2.71, while EGP has a forward P/E of 22.48. We also note that GEO has a PEG ratio of 0.27. 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. EGP currently has a PEG ratio of 2.96.
Another notable valuation metric for GEO is its P/B ratio of 0.76. 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, EGP has a P/B of 3.82.
These metrics, and several others, help GEO earn a Value grade of A, while EGP has been given a Value grade of D.
Both GEO and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GEO is the superior value option right now.
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GEO vs. EGP: Which Stock Is the Better Value Option?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Geo Group (GEO - Free Report) or EastGroup Properties (EGP - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Geo Group and EastGroup Properties have a Zacks Rank of # 2 (Buy) right now. 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 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.
GEO currently has a forward P/E ratio of 2.71, while EGP has a forward P/E of 22.48. We also note that GEO has a PEG ratio of 0.27. 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. EGP currently has a PEG ratio of 2.96.
Another notable valuation metric for GEO is its P/B ratio of 0.76. 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, EGP has a P/B of 3.82.
These metrics, and several others, help GEO earn a Value grade of A, while EGP has been given a Value grade of D.
Both GEO and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GEO is the superior value option right now.