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OLP or GLPI: 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 One Liberty Properties (OLP - Free Report) and Gaming and Leisure Properties (GLPI - 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.

Right now, both One Liberty Properties and Gaming and Leisure Properties are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

OLP currently has a forward P/E ratio of 10.64, while GLPI has a forward P/E of 11.06. We also note that OLP has a PEG ratio of 2.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GLPI currently has a PEG ratio of 2.43.

Another notable valuation metric for OLP is its P/B ratio of 1.47. 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, GLPI has a P/B of 2.55.

Based on these metrics and many more, OLP holds a Value grade of B, while GLPI has a Value grade of C.

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


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One Liberty Properties, Inc. (OLP) - free report >>

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