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PEB vs. NTST: Which Stock Is the Better Value Option?

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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Pebblebrook Hotel (PEB - Free Report) and NETSTREIT (NTST - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Pebblebrook Hotel is sporting a Zacks Rank of #2 (Buy), while NETSTREIT has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that PEB likely has seen a stronger improvement to its earnings outlook than NTST has recently. But this is only part of the picture for value investors.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PEB currently has a forward P/E ratio of 8.64, while NTST has a forward P/E of 15.50. We also note that PEB has a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NTST currently has a PEG ratio of 1.97.

Another notable valuation metric for PEB is its P/B ratio of 0.66. 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, NTST has a P/B of 0.98.

These metrics, and several others, help PEB earn a Value grade of B, while NTST has been given a Value grade of F.

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


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Pebblebrook Hotel Trust (PEB) - free report >>

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