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CSR or AMH: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of Centerspace (CSR - Free Report) and American Homes 4 Rent (AMH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, both Centerspace and American Homes 4 Rent are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
CSR currently has a forward P/E ratio of 11.63, while AMH has a forward P/E of 21.77. We also note that CSR has a PEG ratio of 1.66. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMH currently has a PEG ratio of 2.65.
Another notable valuation metric for CSR is its P/B ratio of 0.94. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AMH has a P/B of 1.72.
Based on these metrics and many more, CSR holds a Value grade of B, while AMH has a Value grade of D.
Both CSR and AMH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CSR is the superior value option right now.
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CSR or AMH: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the REIT and Equity Trust - Residential sector have probably already heard of Centerspace (CSR - Free Report) and American Homes 4 Rent (AMH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, both Centerspace and American Homes 4 Rent are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
CSR currently has a forward P/E ratio of 11.63, while AMH has a forward P/E of 21.77. We also note that CSR has a PEG ratio of 1.66. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMH currently has a PEG ratio of 2.65.
Another notable valuation metric for CSR is its P/B ratio of 0.94. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AMH has a P/B of 1.72.
Based on these metrics and many more, CSR holds a Value grade of B, while AMH has a Value grade of D.
Both CSR and AMH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CSR is the superior value option right now.