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SKT or EQIX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the REIT and Equity Trust - Retail sector might want to consider either Tanger Factory Outlet (SKT - Free Report) or 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Tanger Factory Outlet has a Zacks Rank of #2 (Buy), while Equinix has a Zacks Rank of #3 (Hold). This means that SKT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
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.
SKT currently has a forward P/E ratio of 9.99, while EQIX has a forward P/E of 22.51. We also note that SKT has a PEG ratio of 1.13. 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 2.39.
Another notable valuation metric for SKT is its P/B ratio of 3.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EQIX has a P/B of 5.37.
Based on these metrics and many more, SKT holds a Value grade of B, while EQIX has a Value grade of F.
SKT stands above EQIX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SKT is the superior value option right now.
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SKT or EQIX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the REIT and Equity Trust - Retail sector might want to consider either Tanger Factory Outlet (SKT - Free Report) or 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Tanger Factory Outlet has a Zacks Rank of #2 (Buy), while Equinix has a Zacks Rank of #3 (Hold). This means that SKT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
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.
SKT currently has a forward P/E ratio of 9.99, while EQIX has a forward P/E of 22.51. We also note that SKT has a PEG ratio of 1.13. 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 2.39.
Another notable valuation metric for SKT is its P/B ratio of 3.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EQIX has a P/B of 5.37.
Based on these metrics and many more, SKT holds a Value grade of B, while EQIX has a Value grade of F.
SKT stands above EQIX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SKT is the superior value option right now.