Investors interested in Real Estate - Operations stocks are likely familiar with Newmark Group (NMRK) and Essential Properties Realty Trust, Inc. (EPRT). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Newmark Group has a Zacks Rank of #2 (Buy), while Essential Properties Realty Trust, Inc. has a Zacks Rank of #3 (Hold). This means that NMRK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
NMRK currently has a forward P/E ratio of 6.09, while EPRT has a forward P/E of 21.40. We also note that NMRK has a PEG ratio of 0.70. 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. EPRT currently has a PEG ratio of 2.43.
Another notable valuation metric for NMRK is its P/B ratio of 1.74. 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, EPRT has a P/B of 1.79.
These metrics, and several others, help NMRK earn a Value grade of B, while EPRT has been given a Value grade of F.
NMRK stands above EPRT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NMRK is the superior value option right now.
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Newmark Group, Inc. (NMRK) : Free Stock Analysis Report
Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report
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