Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of CorEnergy (CORR - Free Report) and Highwoods Properties (HIW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
CorEnergy and Highwoods Properties are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CORR likely has seen a stronger improvement to its earnings outlook than HIW has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CORR currently has a forward P/E ratio of 10.31, while HIW has a forward P/E of 13.43. We also note that CORR has a PEG ratio of 2.06. 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. HIW currently has a PEG ratio of 3.34.
Another notable valuation metric for CORR is its P/B ratio of 1.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HIW has a P/B of 2.13.
These are just a few of the metrics contributing to CORR's Value grade of B and HIW's Value grade of D.
CORR 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 CORR is likely the superior value option right now.