KRC vs. STAG: Which Stock Should Value Investors Buy Now?
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Kilroy Realty (KRC) and Stag Industrial (STAG). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Kilroy Realty and Stag Industrial have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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 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.
KRC currently has a forward P/E ratio of 6.28, while STAG has a forward P/E of 15.06. We also note that KRC has a PEG ratio of 5.56. 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. STAG currently has a PEG ratio of 8.23.
Another notable valuation metric for KRC is its P/B ratio of 0.59. 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, STAG has a P/B of 1.77.
These are just a few of the metrics contributing to KRC's Value grade of B and STAG's Value grade of D.
Both KRC and STAG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KRC is the superior value option right now.
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Kilroy Realty Corporation (KRC) : Free Stock Analysis Report
Stag Industrial, Inc. (STAG) : Free Stock Analysis Report
