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BXP or GLPI: 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 Boston Properties (BXP - Free Report) or Gaming and Leisure Properties (GLPI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Boston Properties has a Zacks Rank of #2 (Buy), while Gaming and Leisure Properties has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BXP has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

BXP currently has a forward P/E ratio of 7.19, while GLPI has a forward P/E of 12.27. We also note that BXP has a PEG ratio of 4.55. 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. GLPI currently has a PEG ratio of 4.75.

Another notable valuation metric for BXP is its P/B ratio of 1.02. 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, GLPI has a P/B of 2.80.

These metrics, and several others, help BXP earn a Value grade of B, while GLPI has been given a Value grade of D.

BXP stands above GLPI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BXP is the superior value option right now.


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Boston Properties, Inc. (BXP) - free report >>

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