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PGRE vs. CDP: Which Stock Is the Better Value Option?

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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Paramount Group (PGRE - Free Report) and COPT Defense (CDP - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Paramount Group and COPT Defense have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

PGRE currently has a forward P/E ratio of 6.80, while CDP has a forward P/E of 9.66. We also note that PGRE has a PEG ratio of 0.26. 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. CDP currently has a PEG ratio of 2.35.

Another notable valuation metric for PGRE is its P/B ratio of 0.25. 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, CDP has a P/B of 1.79.

These metrics, and several others, help PGRE earn a Value grade of A, while CDP has been given a Value grade of C.

Both PGRE and CDP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PGRE is the superior value option right now.


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Paramount Group, Inc. (PGRE) - free report >>

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