MGP vs. HIFR: Which Stock Is the Better Value Option?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either MGM Growth Properties (MGP) or InfraREIT (HIFR). 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.
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.
MGM Growth Properties has a Zacks Rank of #2 (Buy), while InfraREIT has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MGP likely has seen a stronger improvement to its earnings outlook than HIFR has recently. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
MGP currently has a forward P/E ratio of 14.03, while HIFR has a forward P/E of 17.41. We also note that MGP has a PEG ratio of 1.41. 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. HIFR currently has a PEG ratio of 3.48.
Another notable valuation metric for MGP is its P/B ratio of 0.36. 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, HIFR has a P/B of 1.08.
These metrics, and several others, help MGP earn a Value grade of A, while HIFR has been given a Value grade of D.
MGP sticks out from HIFR in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGP is the better option right now.
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MGM Growth Properties LLC (MGP) : Free Stock Analysis Report
InfraREIT, Inc. (HIFR) : Free Stock Analysis Report
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