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MDV vs. GLPI: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Modiv Inc. (MDV - Free Report) and Gaming and Leisure Properties (GLPI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Modiv Inc. has a Zacks Rank of #2 (Buy), while Gaming and Leisure Properties has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MDV has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

MDV currently has a forward P/E ratio of 11.20, while GLPI has a forward P/E of 14.36. We also note that MDV has a PEG ratio of 1.87. 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. GLPI currently has a PEG ratio of 2.93.

Another notable valuation metric for MDV is its P/B ratio of 0.48. 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, GLPI has a P/B of 3.78.

These metrics, and several others, help MDV earn a Value grade of B, while GLPI has been given a Value grade of C.

MDV has seen stronger estimate revision activity and sports more attractive valuation metrics than GLPI, so it seems like value investors will conclude that MDV is the superior option right now.


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Gaming and Leisure Properties, Inc. (GLPI) - free report >>

Modiv Industrial, Inc. (MDV) - free report >>

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