Back to top

Image: Bigstock

CUZ vs. NHI: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Cousins Properties (CUZ - Free Report) and National Health Investors (NHI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Cousins Properties has a Zacks Rank of #2 (Buy), while National Health Investors has a Zacks Rank of #4 (Sell). This means that CUZ's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

CUZ currently has a forward P/E ratio of 9.96, while NHI has a forward P/E of 15.07. We also note that CUZ has a PEG ratio of 1.94. 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. NHI currently has a PEG ratio of 3.83.

Another notable valuation metric for CUZ is its P/B ratio of 1.08. 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, NHI has a P/B of 2.21.

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

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

Published in