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PLYM or NHI: Which Is the Better Value Stock Right Now?
Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Plymouth Industrial (PLYM - Free Report) and National Health Investors (NHI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Plymouth Industrial has a Zacks Rank of #2 (Buy), while National Health Investors has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PLYM likely has seen a stronger improvement to its earnings outlook than NHI has recently. However, value investors will care about much more than just this.
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.
PLYM currently has a forward P/E ratio of 10.97, while NHI has a forward P/E of 16.64. We also note that PLYM has a PEG ratio of 1.57. 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. NHI currently has a PEG ratio of 4.72.
Another notable valuation metric for PLYM is its P/B ratio of 1.96. 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, NHI has a P/B of 2.60.
These are just a few of the metrics contributing to PLYM's Value grade of B and NHI's Value grade of D.
PLYM has seen stronger estimate revision activity and sports more attractive valuation metrics than NHI, so it seems like value investors will conclude that PLYM is the superior option right now.