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BRX vs. EPR: Which Stock Is the Better Value Option?

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Investors looking for stocks in the REIT and Equity Trust - Retail sector might want to consider either Brixmor Property (BRX - Free Report) or EPR Properties (EPR - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Brixmor Property is sporting a Zacks Rank of #2 (Buy), while EPR Properties has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BRX has an improving earnings 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 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.

BRX currently has a forward P/E ratio of 9.54, while EPR has a forward P/E of 13.87. We also note that BRX has a PEG ratio of 2.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EPR currently has a PEG ratio of 4.36.

Another notable valuation metric for BRX is its P/B ratio of 1.93. 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, EPR has a P/B of 1.94.

These metrics, and several others, help BRX earn a Value grade of B, while EPR has been given a Value grade of D.

BRX 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 BRX is likely the superior value option right now.


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