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WSR vs. GLPI: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Whitestone (WSR - Free Report) or Gaming and Leisure Properties (GLPI - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Whitestone has a Zacks Rank of #2 (Buy), while Gaming and Leisure Properties has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WSR has an improving earnings outlook. However, value investors will care about much more than just this.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

WSR currently has a forward P/E ratio of 10.93, while GLPI has a forward P/E of 14.17. We also note that WSR has a PEG ratio of 1.37. 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. GLPI currently has a PEG ratio of 9.98.

Another notable valuation metric for WSR is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GLPI has a P/B of 3.24.

These are just a few of the metrics contributing to WSR's Value grade of B and GLPI's Value grade of D.

WSR sticks out from GLPI in both our Zacks Rank and Style Scores models, so value investors will likely feel that WSR is the better option right now.


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Whitestone REIT (WSR) - free report >>

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

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