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ESRT or EGP: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Empire State Realty Trust (ESRT - Free Report) or EastGroup Properties (EGP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Empire State Realty Trust and EastGroup Properties are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ESRT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
ESRT currently has a forward P/E ratio of 8.98, while EGP has a forward P/E of 22.36. We also note that ESRT has a PEG ratio of 2.99. 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. EGP currently has a PEG ratio of 3.88.
Another notable valuation metric for ESRT is its P/B ratio of 0.73. 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, EGP has a P/B of 3.70.
These metrics, and several others, help ESRT earn a Value grade of B, while EGP has been given a Value grade of F.
ESRT stands above EGP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ESRT is the superior value option right now.
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ESRT or EGP: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Empire State Realty Trust (ESRT - Free Report) or EastGroup Properties (EGP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Empire State Realty Trust and EastGroup Properties are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ESRT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
ESRT currently has a forward P/E ratio of 8.98, while EGP has a forward P/E of 22.36. We also note that ESRT has a PEG ratio of 2.99. 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. EGP currently has a PEG ratio of 3.88.
Another notable valuation metric for ESRT is its P/B ratio of 0.73. 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, EGP has a P/B of 3.70.
These metrics, and several others, help ESRT earn a Value grade of B, while EGP has been given a Value grade of F.
ESRT stands above EGP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ESRT is the superior value option right now.