BXP vs. EXR: Which Stock Is the Better Value Option?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Boston Properties (BXP) or Extra Space Storage (EXR). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Boston Properties has a Zacks Rank of #2 (Buy), while Extra Space Storage 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 BXP is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
BXP currently has a forward P/E ratio of 7.15, while EXR has a forward P/E of 12.65. We also note that BXP has a PEG ratio of 4.52. 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. EXR currently has a PEG ratio of 12.17.
Another notable valuation metric for BXP is its P/B ratio of 0.99. 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, EXR has a P/B of 3.45.
These metrics, and several others, help BXP earn a Value grade of B, while EXR has been given a Value grade of F.
BXP stands above EXR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BXP is the superior value option right now.
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Boston Properties, Inc. (BXP) : Free Stock Analysis Report
Extra Space Storage Inc (EXR) : Free Stock Analysis Report
