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GMRE vs. LAMR: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Global Medical REIT (GMRE - Free Report) or Lamar Advertising (LAMR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Global Medical REIT and Lamar Advertising are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.

GMRE currently has a forward P/E ratio of 10.28, while LAMR has a forward P/E of 13.21. We also note that GMRE has a PEG ratio of 1.14. 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. LAMR currently has a PEG ratio of 4.40.

Another notable valuation metric for GMRE is its P/B ratio of 1.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LAMR has a P/B of 6.75.

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

Both GMRE and LAMR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GMRE is the superior value option right now.


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Lamar Advertising Company (LAMR) - free report >>

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