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HST vs. AMT: 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 Host Hotels (HST - Free Report) or American Tower (AMT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Host Hotels and American Tower are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HST is likely seeing its earnings outlook improve to a greater extent. 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.
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.
HST currently has a forward P/E ratio of 10.72, while AMT has a forward P/E of 16.12. We also note that HST has a PEG ratio of 2.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMT currently has a PEG ratio of 2.76.
Another notable valuation metric for HST is its P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AMT has a P/B of 8.11.
Based on these metrics and many more, HST holds a Value grade of B, while AMT has a Value grade of C.
HST has seen stronger estimate revision activity and sports more attractive valuation metrics than AMT, so it seems like value investors will conclude that HST is the superior option right now.
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HST vs. AMT: Which Stock Is the Better Value Option?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Host Hotels (HST - Free Report) or American Tower (AMT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Host Hotels and American Tower are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HST is likely seeing its earnings outlook improve to a greater extent. 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.
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.
HST currently has a forward P/E ratio of 10.72, while AMT has a forward P/E of 16.12. We also note that HST has a PEG ratio of 2.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMT currently has a PEG ratio of 2.76.
Another notable valuation metric for HST is its P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AMT has a P/B of 8.11.
Based on these metrics and many more, HST holds a Value grade of B, while AMT has a Value grade of C.
HST has seen stronger estimate revision activity and sports more attractive valuation metrics than AMT, so it seems like value investors will conclude that HST is the superior option right now.