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TRTX or VTMX: Which Is the Better Value Stock Right Now?

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Investors with an interest in Real Estate - Operations stocks have likely encountered both TPG RE Finance Trust (TRTX - Free Report) and Corporacion Inmobiliaria Vesta, S.A.B. de C.V. Sponsored ADR (VTMX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, TPG RE Finance Trust has a Zacks Rank of #2 (Buy), while Corporacion Inmobiliaria Vesta, S.A.B. de C.V. Sponsored ADR has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TRTX is likely seeing its earnings outlook improve to a greater extent. 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 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.

TRTX currently has a forward P/E ratio of 7.09, while VTMX has a forward P/E of 12.30. We also note that TRTX has a PEG ratio of 1.43. 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. VTMX currently has a PEG ratio of 3.68.

Another notable valuation metric for TRTX is its P/B ratio of 0.52. 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, VTMX has a P/B of 1.09.

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

TRTX has seen stronger estimate revision activity and sports more attractive valuation metrics than VTMX, so it seems like value investors will conclude that TRTX is the superior option right now.

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