Back to top

Image: Bigstock

PINE vs. OHI: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Alpine Income (PINE - Free Report) and Omega Healthcare Investors (OHI - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Alpine Income and Omega Healthcare Investors have a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

PINE currently has a forward P/E ratio of 9.15, while OHI has a forward P/E of 14.12. We also note that PINE has a PEG ratio of 1.53. 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. OHI currently has a PEG ratio of 1.85.

Another notable valuation metric for PINE is its P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, OHI has a P/B of 2.45.

These are just a few of the metrics contributing to PINE's Value grade of B and OHI's Value grade of C.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Omega Healthcare Investors, Inc. (OHI) - free report >>

Alpine Income Property Trust, Inc. (PINE) - free report >>

Published in