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SKT vs. EQIX: Which Stock Is the Better Value Option?
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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 offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Tanger Factory Outlet is sporting 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. 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 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 9.89, while EQIX has a forward P/E of 21.71. We also note that SKT has a PEG ratio of 1.11. 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. EQIX currently has a PEG ratio of 1.98.
Another notable valuation metric for SKT is its P/B ratio of 3.69. 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 5.49.
These are just a few of the metrics contributing to SKT's Value grade of B and EQIX's Value grade of D.
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 vs. EQIX: Which Stock Is the Better Value Option?
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 offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Tanger Factory Outlet is sporting 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. 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 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 9.89, while EQIX has a forward P/E of 21.71. We also note that SKT has a PEG ratio of 1.11. 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. EQIX currently has a PEG ratio of 1.98.
Another notable valuation metric for SKT is its P/B ratio of 3.69. 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 5.49.
These are just a few of the metrics contributing to SKT's Value grade of B and EQIX's Value grade of D.
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.