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HPP vs. SBRA: Which Stock Is the Better Value Option?
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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Hudson Pacific Properties (HPP - Free Report) or Sabra Healthcare (SBRA - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Hudson Pacific Properties is sporting a Zacks Rank of #1 (Strong Buy), while Sabra Healthcare has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HPP likely has seen a stronger improvement to its earnings outlook than SBRA has recently. But this is only part of the picture for value investors.
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.
HPP currently has a forward P/E ratio of 12.41, while SBRA has a forward P/E of 13.72. We also note that HPP has a PEG ratio of 1.05. 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. SBRA currently has a PEG ratio of 1.60.
Another notable valuation metric for HPP is its P/B ratio of 0.29. 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, SBRA has a P/B of 1.93.
Based on these metrics and many more, HPP holds a Value grade of B, while SBRA has a Value grade of C.
HPP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HPP is likely the superior value option right now.
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HPP vs. SBRA: Which Stock Is the Better Value Option?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Hudson Pacific Properties (HPP - Free Report) or Sabra Healthcare (SBRA - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Hudson Pacific Properties is sporting a Zacks Rank of #1 (Strong Buy), while Sabra Healthcare has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HPP likely has seen a stronger improvement to its earnings outlook than SBRA has recently. But this is only part of the picture for value investors.
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.
HPP currently has a forward P/E ratio of 12.41, while SBRA has a forward P/E of 13.72. We also note that HPP has a PEG ratio of 1.05. 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. SBRA currently has a PEG ratio of 1.60.
Another notable valuation metric for HPP is its P/B ratio of 0.29. 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, SBRA has a P/B of 1.93.
Based on these metrics and many more, HPP holds a Value grade of B, while SBRA has a Value grade of C.
HPP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HPP is likely the superior value option right now.