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HPP or NTST: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Hudson Pacific Properties (HPP - Free Report) and NETSTREIT (NTST - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Hudson Pacific Properties and NETSTREIT are sporting a Zacks Rank of #2 (Buy). 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. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

HPP currently has a forward P/E ratio of 14.55, while NTST has a forward P/E of 15.85. We also note that HPP has a PEG ratio of 1.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NTST currently has a PEG ratio of 2.67.

Another notable valuation metric for HPP is its P/B ratio of 0.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NTST has a P/B of 1.41.

These metrics, and several others, help HPP earn a Value grade of A, while NTST has been given a Value grade of C.

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

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