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ESRT vs. SHO: Which Stock Is the Better Value Option?
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Empire State Realty Trust (ESRT - Free Report) and Sunstone Hotel Investors (SHO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, Empire State Realty Trust has a Zacks Rank of #2 (Buy), while Sunstone Hotel Investors has a Zacks Rank of #3 (Hold). This means that ESRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
ESRT currently has a forward P/E ratio of 10.50, while SHO has a forward P/E of 13.42. We also note that ESRT has a PEG ratio of 3.58. 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. SHO currently has a PEG ratio of 4.47.
Another notable valuation metric for ESRT is its P/B ratio of 0.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SHO has a P/B of 1.21.
Based on these metrics and many more, ESRT holds a Value grade of B, while SHO has a Value grade of C.
ESRT sticks out from SHO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ESRT is the better option right now.
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ESRT vs. SHO: Which Stock Is the Better Value Option?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Empire State Realty Trust (ESRT - Free Report) and Sunstone Hotel Investors (SHO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, Empire State Realty Trust has a Zacks Rank of #2 (Buy), while Sunstone Hotel Investors has a Zacks Rank of #3 (Hold). This means that ESRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
ESRT currently has a forward P/E ratio of 10.50, while SHO has a forward P/E of 13.42. We also note that ESRT has a PEG ratio of 3.58. 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. SHO currently has a PEG ratio of 4.47.
Another notable valuation metric for ESRT is its P/B ratio of 0.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SHO has a P/B of 1.21.
Based on these metrics and many more, ESRT holds a Value grade of B, while SHO has a Value grade of C.
ESRT sticks out from SHO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ESRT is the better option right now.