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PMT or TRTX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Real Estate - Operations sector might want to consider either PennyMac Mortgage (PMT - Free Report) or TPG RE Finance Trust (TRTX - 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 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.
Right now, PennyMac Mortgage is sporting a Zacks Rank of #2 (Buy), while TPG RE Finance Trust has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that PMT likely has seen a stronger improvement to its earnings outlook than TRTX has recently. But this is just one piece of the puzzle for value investors.
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.
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.
PMT currently has a forward P/E ratio of 10.48, while TRTX has a forward P/E of 10.54. We also note that PMT has a PEG ratio of 2.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRTX currently has a PEG ratio of 2.11.
Another notable valuation metric for PMT is its P/B ratio of 0.88. 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, TRTX has a P/B of 0.90.
These metrics, and several others, help PMT earn a Value grade of A, while TRTX has been given a Value grade of D.
PMT stands above TRTX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PMT is the superior value option right now.
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PMT or TRTX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Real Estate - Operations sector might want to consider either PennyMac Mortgage (PMT - Free Report) or TPG RE Finance Trust (TRTX - 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 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.
Right now, PennyMac Mortgage is sporting a Zacks Rank of #2 (Buy), while TPG RE Finance Trust has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that PMT likely has seen a stronger improvement to its earnings outlook than TRTX has recently. But this is just one piece of the puzzle for value investors.
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.
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.
PMT currently has a forward P/E ratio of 10.48, while TRTX has a forward P/E of 10.54. We also note that PMT has a PEG ratio of 2.10. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRTX currently has a PEG ratio of 2.11.
Another notable valuation metric for PMT is its P/B ratio of 0.88. 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, TRTX has a P/B of 0.90.
These metrics, and several others, help PMT earn a Value grade of A, while TRTX has been given a Value grade of D.
PMT stands above TRTX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PMT is the superior value option right now.