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TRTX or SUHJY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Real Estate - Operations stocks have likely encountered both TPG RE Finance Trust (TRTX - Free Report) and Sun Hung Kai Properties Ltd. (SUHJY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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.

TPG RE Finance Trust and Sun Hung Kai Properties Ltd. are both sporting a Zacks Rank of #2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

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.

TRTX currently has a forward P/E ratio of 7.99, while SUHJY has a forward P/E of 18.01. We also note that TRTX has a PEG ratio of 1.29. 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. SUHJY currently has a PEG ratio of 2.75.

Another notable valuation metric for TRTX is its P/B ratio of 0.62. 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, SUHJY has a P/B of 0.66.

Based on these metrics and many more, TRTX holds a Value grade of B, while SUHJY has a Value grade of D.

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

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