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AMT vs. PSA: Which Stock Is the Better Value Option?
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of American Tower (AMT - Free Report) and Public Storage (PSA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
American Tower and Public Storage 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 AMT has an improving earnings outlook. 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.
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.
AMT currently has a forward P/E ratio of 17.10, while PSA has a forward P/E of 19.23. We also note that AMT has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSA currently has a PEG ratio of 4.43.
Another notable valuation metric for AMT is its P/B ratio of 8.59. 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, PSA has a P/B of 11.51.
Based on these metrics and many more, AMT holds a Value grade of B, while PSA has a Value grade of D.
AMT stands above PSA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMT is the superior value option right now.
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AMT vs. PSA: Which Stock Is the Better Value Option?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of American Tower (AMT - Free Report) and Public Storage (PSA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
American Tower and Public Storage 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 AMT has an improving earnings outlook. 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.
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.
AMT currently has a forward P/E ratio of 17.10, while PSA has a forward P/E of 19.23. We also note that AMT has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSA currently has a PEG ratio of 4.43.
Another notable valuation metric for AMT is its P/B ratio of 8.59. 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, PSA has a P/B of 11.51.
Based on these metrics and many more, AMT holds a Value grade of B, while PSA has a Value grade of D.
AMT stands above PSA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMT is the superior value option right now.