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SKT or EQIX: Which Is the Better Value Stock Right Now?
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Investors with an interest in REIT and Equity Trust - Retail stocks have likely encountered both Tanger Factory Outlet (SKT - Free Report) and Equinix (EQIX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, Tanger Factory Outlet is sporting a Zacks Rank of #2 (Buy), while Equinix has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SKT likely has seen a stronger improvement to its earnings outlook than EQIX has recently. However, value investors will care about much more than just this.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SKT currently has a forward P/E ratio of 10.74, while EQIX has a forward P/E of 21.88. We also note that SKT has a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EQIX currently has a PEG ratio of 2.32.
Another notable valuation metric for SKT is its P/B ratio of 3.88. 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, EQIX has a P/B of 5.22.
These metrics, and several others, help SKT earn a Value grade of B, while EQIX has been given a Value grade of D.
SKT sticks out from EQIX in both our Zacks Rank and Style Scores models, so value investors will likely feel that SKT is the better option right now.
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SKT or EQIX: Which Is the Better Value Stock Right Now?
Investors with an interest in REIT and Equity Trust - Retail stocks have likely encountered both Tanger Factory Outlet (SKT - Free Report) and Equinix (EQIX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, Tanger Factory Outlet is sporting a Zacks Rank of #2 (Buy), while Equinix has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SKT likely has seen a stronger improvement to its earnings outlook than EQIX has recently. However, value investors will care about much more than just this.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SKT currently has a forward P/E ratio of 10.74, while EQIX has a forward P/E of 21.88. We also note that SKT has a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EQIX currently has a PEG ratio of 2.32.
Another notable valuation metric for SKT is its P/B ratio of 3.88. 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, EQIX has a P/B of 5.22.
These metrics, and several others, help SKT earn a Value grade of B, while EQIX has been given a Value grade of D.
SKT sticks out from EQIX in both our Zacks Rank and Style Scores models, so value investors will likely feel that SKT is the better option right now.