BDN or GLPI: 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 Brandywine Realty Trust (BDN) or Gaming and Leisure Properties (GLPI). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Brandywine Realty Trust has a Zacks Rank of #2 (Buy), while Gaming and Leisure Properties has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BDN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
BDN currently has a forward P/E ratio of 3.89, while GLPI has a forward P/E of 13.06. We also note that BDN has a PEG ratio of 1.50. 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. GLPI currently has a PEG ratio of 4.29.
Another notable valuation metric for BDN is its P/B ratio of 0.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GLPI has a P/B of 3.05.
These metrics, and several others, help BDN earn a Value grade of A, while GLPI has been given a Value grade of D.
BDN sticks out from GLPI in both our Zacks Rank and Style Scores models, so value investors will likely feel that BDN is the better option right now.
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Brandywine Realty Trust (BDN) : Free Stock Analysis Report
Gaming and Leisure Properties, Inc. (GLPI) : Free Stock Analysis Report
