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STRW or NHI: Which Is the Better Value Stock Right Now?

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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Strawberry Fields REIT, Inc. (STRW - Free Report) and National Health Investors (NHI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Strawberry Fields REIT, Inc. and National Health Investors are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that STRW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

STRW currently has a forward P/E ratio of 8.01, while NHI has a forward P/E of 15.09. We also note that STRW has a PEG ratio of 1.00. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NHI currently has a PEG ratio of 4.28.

Another notable valuation metric for STRW is its P/B ratio of 1.43. 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, NHI has a P/B of 2.3.

These metrics, and several others, help STRW earn a Value grade of A, while NHI has been given a Value grade of D.

STRW stands above NHI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRW is the superior value option right now.


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National Health Investors, Inc. (NHI) - free report >>

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