Back to top

Image: Bigstock

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

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 EastGroup Properties (EGP - 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 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.

Alpine Income has a Zacks Rank of #1 (Strong Buy), while EastGroup Properties has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PINE is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 9.17, while EGP has a forward P/E of 19.05. 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. EGP currently has a PEG ratio of 2.66.

Another notable valuation metric for PINE is its P/B ratio of 1.05. 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, EGP has a P/B of 2.75.

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

PINE sticks out from EGP in both our Zacks Rank and Style Scores models, so value investors will likely feel that PINE is the better option right now.


See More Zacks Research for These Tickers


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


EastGroup Properties, Inc. (EGP) - free report >>

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

Published in