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EPR vs. ADC: Which Stock Is the Better Value Option?
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Investors interested in stocks from the REIT and Equity Trust - Retail sector have probably already heard of EPR Properties (EPR - Free Report) and Agree Realty (ADC - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
EPR Properties has a Zacks Rank of #2 (Buy), while Agree Realty has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EPR is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
EPR currently has a forward P/E ratio of 8.24, while ADC has a forward P/E of 18.32. We also note that EPR has a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADC currently has a PEG ratio of 3.25.
Another notable valuation metric for EPR is its P/B ratio of 1.18. 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, ADC has a P/B of 1.29.
These are just a few of the metrics contributing to EPR's Value grade of B and ADC's Value grade of F.
EPR 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 EPR is likely the superior value option right now.
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EPR vs. ADC: Which Stock Is the Better Value Option?
Investors interested in stocks from the REIT and Equity Trust - Retail sector have probably already heard of EPR Properties (EPR - Free Report) and Agree Realty (ADC - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
EPR Properties has a Zacks Rank of #2 (Buy), while Agree Realty has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EPR is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
EPR currently has a forward P/E ratio of 8.24, while ADC has a forward P/E of 18.32. We also note that EPR has a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADC currently has a PEG ratio of 3.25.
Another notable valuation metric for EPR is its P/B ratio of 1.18. 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, ADC has a P/B of 1.29.
These are just a few of the metrics contributing to EPR's Value grade of B and ADC's Value grade of F.
EPR 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 EPR is likely the superior value option right now.