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PMT or INVH: 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 PennyMac Mortgage (PMT - Free Report) and Invitation Home (INVH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
PennyMac Mortgage and Invitation Home are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that PMT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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 11.09, while INVH has a forward P/E of 16.75. We also note that PMT has a PEG ratio of 2.22. 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. INVH currently has a PEG ratio of 3.09.
Another notable valuation metric for PMT is its P/B ratio of 0.94. 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, INVH has a P/B of 1.26.
These metrics, and several others, help PMT earn a Value grade of A, while INVH has been given a Value grade of F.
PMT 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 PMT is likely the superior value option right now.
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PMT or INVH: Which Is the Better Value Stock Right Now?
Investors with an interest in Real Estate - Operations stocks have likely encountered both PennyMac Mortgage (PMT - Free Report) and Invitation Home (INVH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
PennyMac Mortgage and Invitation Home are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that PMT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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 11.09, while INVH has a forward P/E of 16.75. We also note that PMT has a PEG ratio of 2.22. 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. INVH currently has a PEG ratio of 3.09.
Another notable valuation metric for PMT is its P/B ratio of 0.94. 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, INVH has a P/B of 1.26.
These metrics, and several others, help PMT earn a Value grade of A, while INVH has been given a Value grade of F.
PMT 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 PMT is likely the superior value option right now.