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RLJ vs. NHI: 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 RLJ Lodging (RLJ - Free Report) or National Health Investors (NHI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
RLJ Lodging has a Zacks Rank of #2 (Buy), while National Health Investors has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RLJ has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
RLJ currently has a forward P/E ratio of 8.97, while NHI has a forward P/E of 13.86. We also note that RLJ has a PEG ratio of 2.17. 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. NHI currently has a PEG ratio of 4.21.
Another notable valuation metric for RLJ is its P/B ratio of 1.12. 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, NHI has a P/B of 1.55.
These metrics, and several others, help RLJ earn a Value grade of A, while NHI has been given a Value grade of C.
RLJ is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that RLJ is likely the superior value option right now.
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RLJ vs. NHI: Which Stock Is the Better Value Option?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either RLJ Lodging (RLJ - Free Report) or National Health Investors (NHI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
RLJ Lodging has a Zacks Rank of #2 (Buy), while National Health Investors has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RLJ has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
RLJ currently has a forward P/E ratio of 8.97, while NHI has a forward P/E of 13.86. We also note that RLJ has a PEG ratio of 2.17. 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. NHI currently has a PEG ratio of 4.21.
Another notable valuation metric for RLJ is its P/B ratio of 1.12. 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, NHI has a P/B of 1.55.
These metrics, and several others, help RLJ earn a Value grade of A, while NHI has been given a Value grade of C.
RLJ is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that RLJ is likely the superior value option right now.