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GMRE or CDP: Which Is the Better Value Stock Right Now?

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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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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 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 just one piece of the puzzle for value investors.

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.

GMRE currently has a forward P/E ratio of 9.99, while CDP has a forward P/E of 11.33. We also note that GMRE has a PEG ratio of 1.25. 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. CDP currently has a PEG ratio of 2.76.

Another notable valuation metric for GMRE is its P/B ratio of 1.19. 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 2.14.

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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