Back to top

Image: Bigstock

PINE or OHI: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Alpine Income (PINE - Free Report) and Omega Healthcare Investors (OHI - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Alpine Income has a Zacks Rank of #2 (Buy), while Omega Healthcare Investors has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PINE likely has seen a stronger improvement to its earnings outlook than OHI 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.

PINE currently has a forward P/E ratio of 9.31, while OHI has a forward P/E of 14.46. We also note that PINE has a PEG ratio of 1.55. 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. OHI currently has a PEG ratio of 1.90.

Another notable valuation metric for PINE is its P/B ratio of 0.97. 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, OHI has a P/B of 2.51.

These metrics, and several others, help PINE earn a Value grade of B, while OHI has been given a Value grade of D.

PINE is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PINE is likely 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