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DHC or OFC: Which Is the Better Value Stock Right Now?
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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Diversified Healthcare (DHC - Free Report) and Corporate Office Properties . 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 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.
Diversified Healthcare and Corporate Office Properties are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DHC is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
DHC currently has a forward P/E ratio of 2.31, while OFC has a forward P/E of 9.82. We also note that DHC has a PEG ratio of 0.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OFC currently has a PEG ratio of 0.89.
Another notable valuation metric for DHC is its P/B ratio of 0.08. 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, OFC has a P/B of 1.49.
These are just a few of the metrics contributing to DHC's Value grade of A and OFC's Value grade of C.
DHC stands above OFC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DHC is the superior value option right now.
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DHC or OFC: Which Is the Better Value Stock Right Now?
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Diversified Healthcare (DHC - Free Report) and Corporate Office Properties . 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 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.
Diversified Healthcare and Corporate Office Properties are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DHC is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
DHC currently has a forward P/E ratio of 2.31, while OFC has a forward P/E of 9.82. We also note that DHC has a PEG ratio of 0.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OFC currently has a PEG ratio of 0.89.
Another notable valuation metric for DHC is its P/B ratio of 0.08. 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, OFC has a P/B of 1.49.
These are just a few of the metrics contributing to DHC's Value grade of A and OFC's Value grade of C.
DHC stands above OFC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DHC is the superior value option right now.