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MDV 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 Modiv Inc. (MDV - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, both Modiv Inc. and EastGroup Properties are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

MDV currently has a forward P/E ratio of 8.01, while EGP has a forward P/E of 20.70. We also note that MDV has a PEG ratio of 1.33. 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 2.63.

Another notable valuation metric for MDV is its P/B ratio of 0.34. 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, EGP has a P/B of 3.15.

These metrics, and several others, help MDV earn a Value grade of A, while EGP has been given a Value grade of D.

Both MDV and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MDV is the superior value option right now.


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EastGroup Properties, Inc. (EGP) - free report >>

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