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BTDPY or MMI: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Real Estate - Development sector have probably already heard of Barratt Developments PLC Unsponsored ADR (BTDPY - Free Report) and Marcus & Millichap (MMI - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Barratt Developments PLC Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while Marcus & Millichap has a Zacks Rank of #3 (Hold). This means that BTDPY'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 tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

BTDPY currently has a forward P/E ratio of 9.62, while MMI has a forward P/E of 19.26. We also note that BTDPY has a PEG ratio of 1.32. 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. MMI currently has a PEG ratio of 3.21.

Another notable valuation metric for BTDPY is its P/B ratio of 1.55. 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, MMI has a P/B of 4.38.

Based on these metrics and many more, BTDPY holds a Value grade of A, while MMI has a Value grade of D.

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


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Marcus & Millichap, Inc. (MMI) - free report >>

Barratt Developments PLC Unsponsored ADR (BTDPY) - free report >>