Back to top

Image: Bigstock

GLPI or AMT: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Gaming and Leisure Properties (GLPI - Free Report) and American Tower (AMT - 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.

Gaming and Leisure Properties and American Tower are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that GLPI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

GLPI currently has a forward P/E ratio of 11.13, while AMT has a forward P/E of 31.99. We also note that GLPI has a PEG ratio of 1.83. 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. AMT currently has a PEG ratio of 2.17.

Another notable valuation metric for GLPI is its P/B ratio of 3.91. 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, AMT has a P/B of 28.86.

These metrics, and several others, help GLPI earn a Value grade of B, while AMT has been given a Value grade of F.

GLPI has seen stronger estimate revision activity and sports more attractive valuation metrics than AMT, so it seems like value investors will conclude that GLPI is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


American Tower Corporation (AMT) - free report >>

Gaming and Leisure Properties, Inc. (GLPI) - free report >>

Published in