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HPP vs. NHI: 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 Hudson Pacific Properties (HPP - Free Report) and National Health Investors (NHI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Hudson Pacific Properties and National Health Investors are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that HPP likely has seen a stronger improvement to its earnings outlook than NHI has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

HPP currently has a forward P/E ratio of 6.24, while NHI has a forward P/E of 16.31. We also note that HPP has a PEG ratio of 0.65. 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. NHI currently has a PEG ratio of 4.46.

Another notable valuation metric for HPP is its P/B ratio of 0.12. 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, NHI has a P/B of 2.57.

These are just a few of the metrics contributing to HPP's Value grade of A and NHI's Value grade of D.

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

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