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RHP or PSA: 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 Ryman Hospitality Properties (RHP - Free Report) and Public Storage (PSA - 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.

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.

Ryman Hospitality Properties has a Zacks Rank of #2 (Buy), while Public Storage has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that RHP likely has seen a stronger improvement to its earnings outlook than PSA has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

RHP currently has a forward P/E ratio of 13.03, while PSA has a forward P/E of 17.12. We also note that RHP has a PEG ratio of 1.84. 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. PSA currently has a PEG ratio of 4.33.

Another notable valuation metric for RHP is its P/B ratio of 9.6. 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, PSA has a P/B of 10.31.

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

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

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