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DEI vs. REXR: Which Stock Is the Better Value Option?

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Douglas Emmett (DEI - Free Report) and Rexford Industrial (REXR - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Right now, Douglas Emmett is sporting a Zacks Rank of #2 (Buy), while Rexford Industrial has a Zacks Rank of #4 (Sell). This means that DEI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

DEI currently has a forward P/E ratio of 8.40, while REXR has a forward P/E of 27.22. We also note that DEI has a PEG ratio of 1.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REXR currently has a PEG ratio of 2.41.

Another notable valuation metric for DEI is its P/B ratio of 0.72. 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, REXR has a P/B of 1.58.

These are just a few of the metrics contributing to DEI's Value grade of B and REXR's Value grade of F.

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


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Douglas Emmett, Inc. (DEI) - free report >>

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