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GMRE vs. CDP: 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 Global Medical REIT (GMRE - Free Report) and COPT Defense (CDP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Global Medical REIT and COPT Defense have a Zacks Rank of # 2 (Buy) right now. 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 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.

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.

GMRE currently has a forward P/E ratio of 9.78, while CDP has a forward P/E of 11.19. We also note that GMRE has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CDP currently has a PEG ratio of 2.73.

Another notable valuation metric for GMRE is its P/B ratio of 1.20. 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, CDP has a P/B of 2.11.

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

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


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Global Medical REIT Inc. (GMRE) - free report >>

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