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GEO or GLPI: Which Is the Better Value Stock Right Now?

·2 min read

Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Geo Group (GEO) and 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.

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.

Right now, Geo Group is sporting a Zacks Rank of #2 (Buy), while Gaming and Leisure Properties has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GEO 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

GEO currently has a forward P/E ratio of 3.17, while GLPI has a forward P/E of 13.15. We also note that GEO has a PEG ratio of 0.32. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GLPI currently has a PEG ratio of 2.68.

Another notable valuation metric for GEO is its P/B ratio of 0.90. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, GLPI has a P/B of 3.45.

These metrics, and several others, help GEO earn a Value grade of A, while GLPI has been given a Value grade of D.

GEO stands above GLPI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GEO is the superior value option right now.


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Geo Group Inc The (GEO) : Free Stock Analysis Report
 
Gaming and Leisure Properties, Inc. (GLPI) : Free Stock Analysis Report
 
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