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EPR vs. BRX: Which Stock Is the Better Value Option?

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Investors looking for stocks in the REIT and Equity Trust - Retail sector might want to consider either EPR Properties (EPR - Free Report) or Brixmor Property (BRX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

EPR Properties has a Zacks Rank of #2 (Buy), while Brixmor Property has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EPR is likely seeing its earnings outlook improve to a greater extent. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

EPR currently has a forward P/E ratio of 8.96, while BRX has a forward P/E of 11.06. We also note that EPR has a PEG ratio of 0.73. 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. BRX currently has a PEG ratio of 1.53.

Another notable valuation metric for EPR is its P/B ratio of 1.25. 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, BRX has a P/B of 2.31.

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

EPR 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 EPR is likely the superior value option right now.


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