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PINE vs. OHI: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Alpine Income (PINE - Free Report) or Omega Healthcare Investors (OHI - 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 and Omega Healthcare Investors are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that PINE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PINE currently has a forward P/E ratio of 9.78, while OHI has a forward P/E of 14.89. We also note that PINE has a PEG ratio of 1.40. 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. OHI currently has a PEG ratio of 1.97.

Another notable valuation metric for PINE is its P/B ratio of 1.03. 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, OHI has a P/B of 2.62.

Based on these metrics and many more, PINE holds a Value grade of B, while OHI has a Value grade of C.

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

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