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TRTX vs. SDHC: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Real Estate - Operations sector have probably already heard of TPG RE Finance Trust (TRTX - Free Report) and Smith Douglas Homes Corp. (SDHC - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, TPG RE Finance Trust has a Zacks Rank of #2 (Buy), while Smith Douglas Homes Corp. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that TRTX likely has seen a stronger improvement to its earnings outlook than SDHC 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.
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.
TRTX currently has a forward P/E ratio of 8.62, while SDHC has a forward P/E of 17.39. We also note that TRTX has a PEG ratio of 2.15. 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. SDHC currently has a PEG ratio of 11.99.
Another notable valuation metric for TRTX is its P/B ratio of 0.62. 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, SDHC has a P/B of 2.26.
These are just a few of the metrics contributing to TRTX's Value grade of B and SDHC's Value grade of F.
TRTX sticks out from SDHC in both our Zacks Rank and Style Scores models, so value investors will likely feel that TRTX is the better option right now.
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TRTX vs. SDHC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Real Estate - Operations sector have probably already heard of TPG RE Finance Trust (TRTX - Free Report) and Smith Douglas Homes Corp. (SDHC - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, TPG RE Finance Trust has a Zacks Rank of #2 (Buy), while Smith Douglas Homes Corp. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that TRTX likely has seen a stronger improvement to its earnings outlook than SDHC 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.
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.
TRTX currently has a forward P/E ratio of 8.62, while SDHC has a forward P/E of 17.39. We also note that TRTX has a PEG ratio of 2.15. 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. SDHC currently has a PEG ratio of 11.99.
Another notable valuation metric for TRTX is its P/B ratio of 0.62. 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, SDHC has a P/B of 2.26.
These are just a few of the metrics contributing to TRTX's Value grade of B and SDHC's Value grade of F.
TRTX sticks out from SDHC in both our Zacks Rank and Style Scores models, so value investors will likely feel that TRTX is the better option right now.