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TRTX vs. VTMX: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Real Estate - Operations sector might want to consider either TPG RE Finance Trust (TRTX - Free Report) or Corporacion Inmobiliaria Vesta, S.A.B. de C.V. Sponsored ADR (VTMX - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

TPG RE Finance Trust and Corporacion Inmobiliaria Vesta, S.A.B. de C.V. Sponsored ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TRTX has an improving earnings outlook. However, value investors will care about much more than just this.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TRTX currently has a forward P/E ratio of 7.87, while VTMX has a forward P/E of 20.83. We also note that TRTX has a PEG ratio of 1.27. 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. VTMX currently has a PEG ratio of 4.74.

Another notable valuation metric for TRTX is its P/B ratio of 0.61. 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, VTMX has a P/B of 1.09.

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

TRTX stands above VTMX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TRTX is the superior value option right now.

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