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CSR vs. AMH: Which Stock Is the Better Value Option?
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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 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Centerspace has a Zacks Rank of #2 (Buy), while American Homes 4 Rent has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CSR likely has seen a stronger improvement to its earnings outlook than AMH has recently. 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 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.
CSR currently has a forward P/E ratio of 11.71, while AMH has a forward P/E of 21.22. We also note that CSR has a PEG ratio of 1.67. 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. AMH currently has a PEG ratio of 2.58.
Another notable valuation metric for CSR is its P/B ratio of 0.95. 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, AMH has a P/B of 1.68.
Based on these metrics and many more, CSR holds a Value grade of B, while AMH has a Value grade of D.
CSR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CSR is likely the superior value option right now.
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CSR vs. AMH: Which Stock Is the Better Value Option?
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 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Centerspace has a Zacks Rank of #2 (Buy), while American Homes 4 Rent has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CSR likely has seen a stronger improvement to its earnings outlook than AMH has recently. 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 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.
CSR currently has a forward P/E ratio of 11.71, while AMH has a forward P/E of 21.22. We also note that CSR has a PEG ratio of 1.67. 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. AMH currently has a PEG ratio of 2.58.
Another notable valuation metric for CSR is its P/B ratio of 0.95. 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, AMH has a P/B of 1.68.
Based on these metrics and many more, CSR holds a Value grade of B, while AMH has a Value grade of D.
CSR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CSR is likely the superior value option right now.