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OUT vs. GLPI: 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 Outfront Media (OUT - Free Report) or 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.

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.

Outfront Media and Gaming and Leisure Properties are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OUT has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

OUT currently has a forward P/E ratio of 8.06, while GLPI has a forward P/E of 13.35. We also note that OUT has a PEG ratio of 0.81. 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. GLPI currently has a PEG ratio of 3.30.

Another notable valuation metric for OUT is its P/B ratio of 2.22. 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, GLPI has a P/B of 3.50.

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

OUT 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 OUT is likely the superior value option right now.


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OUTFRONT Media Inc. (OUT) - free report >>

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

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