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CSR vs. AMH: Which Stock Should Value Investors Buy 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 stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Centerspace and American Homes 4 Rent are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CSR currently has a forward P/E ratio of 11.87, while AMH has a forward P/E of 20.73. We also note that CSR has a PEG ratio of 1.70. 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. AMH currently has a PEG ratio of 2.76.
Another notable valuation metric for CSR is its P/B ratio of 1.01. 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, AMH has a P/B of 1.73.
These are just a few of the metrics contributing to CSR's Value grade of B and AMH's Value grade of D.
CSR has seen stronger estimate revision activity and sports more attractive valuation metrics than AMH, so it seems like value investors will conclude that CSR is the superior option right now.
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CSR vs. AMH: Which Stock Should Value Investors Buy 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 stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Centerspace and American Homes 4 Rent are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CSR currently has a forward P/E ratio of 11.87, while AMH has a forward P/E of 20.73. We also note that CSR has a PEG ratio of 1.70. 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. AMH currently has a PEG ratio of 2.76.
Another notable valuation metric for CSR is its P/B ratio of 1.01. 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, AMH has a P/B of 1.73.
These are just a few of the metrics contributing to CSR's Value grade of B and AMH's Value grade of D.
CSR has seen stronger estimate revision activity and sports more attractive valuation metrics than AMH, so it seems like value investors will conclude that CSR is the superior option right now.