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GLPI or EGP: Which Is the Better Value Stock Right Now?

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Gaming and Leisure Properties (GLPI - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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.

Gaming and Leisure Properties and EastGroup Properties 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 GLPI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

GLPI currently has a forward P/E ratio of 9.78, while EGP has a forward P/E of 20.63. We also note that GLPI has a PEG ratio of 1.65. 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. EGP currently has a PEG ratio of 2.89.

Another notable valuation metric for GLPI is its P/B ratio of 2.18. 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, EGP has a P/B of 2.98.

Based on these metrics and many more, GLPI holds a Value grade of B, while EGP has a Value grade of D.

GLPI sticks out from EGP in both our Zacks Rank and Style Scores models, so value investors will likely feel that GLPI is the better option right now.

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