We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GNL vs. SHO: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Global Net Lease (GNL - Free Report) and Sunstone Hotel Investors (SHO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Global Net Lease has a Zacks Rank of #2 (Buy), while Sunstone Hotel Investors has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GNL likely has seen a stronger improvement to its earnings outlook than SHO has recently. 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.
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.
GNL currently has a forward P/E ratio of 6.64, while SHO has a forward P/E of 11.12. We also note that GNL 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. SHO currently has a PEG ratio of 2.53.
Another notable valuation metric for GNL is its P/B ratio of 0.74. 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, SHO has a P/B of 1.18.
These metrics, and several others, help GNL earn a Value grade of A, while SHO has been given a Value grade of C.
GNL sticks out from SHO in both our Zacks Rank and Style Scores models, so value investors will likely feel that GNL is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GNL vs. SHO: Which Stock Should Value Investors Buy Now?
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Global Net Lease (GNL - Free Report) and Sunstone Hotel Investors (SHO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Global Net Lease has a Zacks Rank of #2 (Buy), while Sunstone Hotel Investors has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GNL likely has seen a stronger improvement to its earnings outlook than SHO has recently. 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.
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.
GNL currently has a forward P/E ratio of 6.64, while SHO has a forward P/E of 11.12. We also note that GNL 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. SHO currently has a PEG ratio of 2.53.
Another notable valuation metric for GNL is its P/B ratio of 0.74. 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, SHO has a P/B of 1.18.
These metrics, and several others, help GNL earn a Value grade of A, while SHO has been given a Value grade of C.
GNL sticks out from SHO in both our Zacks Rank and Style Scores models, so value investors will likely feel that GNL is the better option right now.