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HST vs. EXR: Which Stock Is the Better Value Option?
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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Host Hotels (HST - Free Report) and Extra Space Storage (EXR - 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, Host Hotels has a Zacks Rank of #2 (Buy), while Extra Space Storage has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HST is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
HST currently has a forward P/E ratio of 8.92, while EXR has a forward P/E of 17.27. We also note that HST has a PEG ratio of 2.15. 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. EXR currently has a PEG ratio of 2.68.
Another notable valuation metric for HST is its P/B ratio of 1.88. 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, EXR has a P/B of 2.12.
These are just a few of the metrics contributing to HST's Value grade of A and EXR's Value grade of D.
HST sticks out from EXR in both our Zacks Rank and Style Scores models, so value investors will likely feel that HST is the better option right now.
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HST vs. EXR: Which Stock Is the Better Value Option?
Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Host Hotels (HST - Free Report) and Extra Space Storage (EXR - 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, Host Hotels has a Zacks Rank of #2 (Buy), while Extra Space Storage has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HST is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
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.
HST currently has a forward P/E ratio of 8.92, while EXR has a forward P/E of 17.27. We also note that HST has a PEG ratio of 2.15. 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. EXR currently has a PEG ratio of 2.68.
Another notable valuation metric for HST is its P/B ratio of 1.88. 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, EXR has a P/B of 2.12.
These are just a few of the metrics contributing to HST's Value grade of A and EXR's Value grade of D.
HST sticks out from EXR in both our Zacks Rank and Style Scores models, so value investors will likely feel that HST is the better option right now.