Back to top

Image: Bigstock

MDV vs. OLP: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Modiv Inc. (MDV - Free Report) and One Liberty Properties (OLP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Modiv Inc. and One Liberty Properties are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MDV is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

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.

MDV currently has a forward P/E ratio of 11.21, while OLP has a forward P/E of 12.45. We also note that MDV has a PEG ratio of 1.87. 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. OLP currently has a PEG ratio of 2.07.

Another notable valuation metric for MDV is its P/B ratio of 0.48. 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, OLP has a P/B of 1.61.

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

MDV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MDV is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


One Liberty Properties, Inc. (OLP) - free report >>

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

Published in