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PLYM vs. NHI: Which Stock Is the Better Value Option?
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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Plymouth Industrial (PLYM - Free Report) and National Health Investors (NHI - Free Report) . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Plymouth Industrial and National Health Investors have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PLYM currently has a forward P/E ratio of 11.40, while NHI has a forward P/E of 17.75. We also note that PLYM has a PEG ratio of 1.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NHI currently has a PEG ratio of 4.73.
Another notable valuation metric for PLYM is its P/B ratio of 2.04. 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, NHI has a P/B of 2.80.
Based on these metrics and many more, PLYM holds a Value grade of B, while NHI has a Value grade of D.
Both PLYM and NHI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PLYM is the superior value option right now.
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PLYM vs. NHI: Which Stock Is the Better Value Option?
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Plymouth Industrial (PLYM - Free Report) and National Health Investors (NHI - Free Report) . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Plymouth Industrial and National Health Investors have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PLYM currently has a forward P/E ratio of 11.40, while NHI has a forward P/E of 17.75. We also note that PLYM has a PEG ratio of 1.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NHI currently has a PEG ratio of 4.73.
Another notable valuation metric for PLYM is its P/B ratio of 2.04. 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, NHI has a P/B of 2.80.
Based on these metrics and many more, PLYM holds a Value grade of B, while NHI has a Value grade of D.
Both PLYM and NHI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PLYM is the superior value option right now.