GNL or EGP: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Global Net Lease (GNL) or EastGroup Properties (EGP). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Global Net Lease has a Zacks Rank of #2 (Buy), while EastGroup Properties has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GNL has an improving earnings 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GNL currently has a forward P/E ratio of 5.68, while EGP has a forward P/E of 20.93. We also note that GNL has a PEG ratio of 0.95. 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. EGP currently has a PEG ratio of 2.70.
Another notable valuation metric for GNL is its P/B ratio of 0.69. 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, EGP has a P/B of 3.14.
These metrics, and several others, help GNL earn a Value grade of A, while EGP has been given a Value grade of F.
GNL stands above EGP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GNL is the superior value option right now.
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Global Net Lease, Inc. (GNL) : Free Stock Analysis Report
EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report