CDP or GLPI: Which Is the Better Value Stock Right Now?
Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both COPT Defense (CDP) and Gaming and Leisure Properties (GLPI). But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both COPT Defense and Gaming and Leisure Properties 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. 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.
CDP currently has a forward P/E ratio of 9.88, while GLPI has a forward P/E of 12.51. We also note that CDP has a PEG ratio of 0.90. 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. GLPI currently has a PEG ratio of 4.
Another notable valuation metric for CDP is its P/B ratio of 1.50. 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, GLPI has a P/B of 2.95.
These are just a few of the metrics contributing to CDP's Value grade of B and GLPI's Value grade of D.
Both CDP and GLPI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CDP is the superior value option right now.
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COPT Defense Properties (CDP) : Free Stock Analysis Report
Gaming and Leisure Properties, Inc. (GLPI) : Free Stock Analysis Report
